Bullions counter may witness range bound movement as US markets are closed for the President Day holiday. Gold can move in range of 56000- 56400 while silver also can move in range of 65000-65700. Gold prices fell on Monday, weighed down by a stronger dollar and after recent U.S. economic data raised worries that the Federal Reserve could hike interest rates further.
Bullions counter may witness range bound movement as US markets are closed for the President Day holiday. Gold can move in range of 56000- 56400 while silver also can move in range of 65000-65700. Gold prices fell on Monday, weighed down by a stronger dollar and after recent U.S. economic data raised worries that the Federal Reserve could hike interest rates further. Money markets are now expecting the Fed to raise benchmark rates above 5% by May, with rates to peak at 5.3% in July, after recent data showed a tight job market, along with high inflation and consumer prices. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 919.92 tonnes on Friday from 921.08 tonnes on Thursday.
In base metal counter, Copper can trade mixed path in range of 770-785. On the macro front, U.S. inflation is slowing down but at a slower pace. The Fed is still sending out hawkish signals last week, and the market is concerned about its follow-up actions. Despite limited arrivals of imported copper, there were high shipments of domestic copper from smelters to warehouses due to delivery of the SHFE front-month contract. Downstream stockpiling was slow. Downstream demand has not seen a significant improvement and it is unlikely to pick up in the short term. It is expected that copper prices will remain range bound at high levels due to market optimism over a rebound in the domestic economy. Zinc may trade with sideways path as it can move in range of 265-276. Aluminum can trade weaker path as it can move in range of 209-214.
ENERGY: Crude oil may remain on upside path as it can move in range of 6300-6500. Last week some selling pressure was seen as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery. Washington also announced plans to release 26 million barrels of crude from the Strategic Petroleum Reserve (SPR) which could lead to higher stockpiles at Cushing, Oklahoma, the delivery point for WTI contracts, until May. China, along with India, have become top buyers of Russian crude following the European Union embargo. India’s Russian oil imports hit a record 1.4 million barrels per day in January, trade data showed. Natural gas prices can witness further selling pressure as it can move in range of 175-195.
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