Bullion counter can witness some bounce back at lower levels but investors maintained a cautious stance ahead of FOMC meeting by the Federal Reserve where the U.S. central bank is expected to hike rates aggressively in an effort to curb inflation. Gold (Oct) can recover towards 49700 while taking support near 49200 while Silver (Dec) can bounce towards 58000 while taking support near 57000.
Bullion counter can witness some bounce back at lower levels but investors maintained a cautious stance ahead of FOMC meeting by the Federal Reserve where the U.S. central bank is expected to hike rates aggressively in an effort to curb inflation. Gold (Oct) can recover towards 49700 while taking support near 49200 while Silver (Dec) can bounce towards 58000 while taking support near 57000. The benchmark 10-year Treasury yield held close to its highest level in over a decade scaled on Monday. Mirroring investor sentiment, holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 30,799,131 ounces on Monday, the lowest since March 2020.
In base metal counter, Copper can open in green as it can move towards 665. Zinc may move sideways in range of 280-290 in MCX. Aluminum can move in range of 194-200. The puzzle facing the zinc market is whether demand or supply will fall hardest this year. China’s aluminium imports in August dropped 19% from a year earlier, customs data showed on Sunday, reflecting lowered import appetite amid record-high domestic production and tight overseas supply. On the supply side, the news of production reduction in Yunnan province is still fermenting, and a number of smelters have slashed their production by 10% as required.
Crude oil may continue on sideways path as concerns that interest rate hikes in the United States to tame inflation will curb economic growth is keeping upside capped while supply concerns is supporting the prices. It can move in range of 6800-6900 The U.S. Energy Department will sell up to 10 million barrels of oil from the Strategic Petroleum Reserve for delivery in November, extending the timing of a plan to sell 180 million barrels from the stockpile to tame fuel prices. The impasse over a revivial of the Iran nuclear deal is continuing to keep that country’s exports from fully returning to the market, which is providing some support to prices. Natural gas prices may witness lower level buying as it can move in range of 615-640.
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