Bullions counter may remain in narrow range on mixed fundamentals. Gold can move in range of 50200-50400 while Silver can move in range of 56000-57000. The U.S. central bank may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising, Minneapolis Fed President Neel Kashkari said on Tuesday.
Bullions counter may remain in narrow range on mixed fundamentals. Gold can move in range of 50200-50400 while Silver can move in range of 56000-57000. The U.S. central bank may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising, Minneapolis Fed President Neel Kashkari said on Tuesday. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell by 0.29 tonnes on Tuesday. Russia’s central bank sees no need in raising gold holdings in its gold and forex reserves, its deputy governor, Alexei Zabotkin said on Tuesday, shrugging off a plea from the gold miners to increase state purchases amid Western sanctions.
In base metal counter, Copper can trade with weak bias as it can dip lower towards 630 while taking resistance near 643. Zinc may remain sideways bias as it can move in range of 263-272. Aluminum can trade with sideways bias in range of 194-197 in MCX. In terms of supply, with the release of new production capacity and resumption of idled production capacity in Sichuan and Inner Mongolia, the total domestic operating aluminium capacity is slowly recovering. However, with arrival of the dry season in Yunnan, it remains to be seen whether output cuts in the region will expand. In the short term, the domestic supply pressure is expected to ease. High costs will support aluminium prices.
Crude oil may witness some short covering at lower levels as concern over tight supplies following reports of lower inventories in the United States offset fears of lower demand from top oil importer China. Overall it can move in range of 6800-7100. U.S. crude inventories were expected to have increased for a second consecutive week, rising by 1.4 million barrels in the week to Oct. 14, an extended Reuters poll showed on Tuesday. Earlier in October, OPEC+ – which comprises the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia – agreed on a steep oil production cut of 2 million barrels per day. The OPEC+ production cut, which comes ahead of a European Union embargo on Russian oil, will squeeze supply in an already tight market. The European Union’s sanctions on Russian crude and oil products will take effect in December and February, respectively. Natural gas prices may slip further lower as it can test 450 in MCX.
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