BULLIONS

Bullions counter may continue to remain on downside path as yellow metal prices were on course for their biggest weekly drop in 3-1/2 months on Friday as hopes for a resolution in the U.S. debt ceiling negotiations and fading expectations of a rate cut by year-end took some shine off bullion. Gold can move in range of 59600-60000 while silver also can move in range of 71500-73000. U.S. President Joe Biden and House of Representatives Speaker Kevin McCarthy hope to finalize a deal on the debt ceiling after Biden returns from the Group of Seven meeting in Japan on Sunday. The dollar index hovered close to a near two-month high, making gold less affordable for overseas investors. Two Fed policymakers said U.S. inflation does not look like it is cooling fast enough to allow the central bank to hit pause on the interest-rate hike campaign. U.S. Fed Chair Jerome Powell is slated to speak at an event later in the day, and traders will scan for policy signals.

BASE METALS

In base metal counter, Copper can remain on weaker note as it can move in range of 716-726. On the macro front, the United States announced solid economic data, further reducing market bets on the Fed’s easing policy. In addition, the US dollar index rebounded on expectations that the United States will reach a debt ceiling agreement to avoid a potential default. Consumption in south China improved even as copper prices rebounded. The market needs to pay attention to whether the inflow of imported copper can alleviate the tight spot supply. In terms of price, although the debt ceiling issue of the United States has eased, the market is still worried about the financial market. Zinc may also tad further lower as it can move in range of 220-227. Aluminum can trade on sideways path as it can move in range of 206-210.

ENERGY: Crude oil may trade on positive path as it can move in range of 5940-6100. Oil prices fell as optimism that a U.S. debt default will be avoided weighed against sticky inflation data that could portend more interest rate hikes from global central banks. Optimism over a deal plus data showing lower-than-expected initial jobless claims spurred the U.S. dollar on Wednesday to its highest since March 17 against a basket of currencies. The increase in the core consumer price index, which excludes volatile fresh food but includes energy costs, matched a median market forecast and followed a 3.1% rise in March. Natural gas prices trade on firm path as it can move in range of 207-223.

Disclosure

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