Bullions counter may witness range bound movement as yellow metal can move in range of 58300-58600 while silver also can move in range of 70000-71000. Gold prices steadied above 5-month lows on Monday after declining in the previous five sessions, as investors saddled up for central bankers’ gathering in Jackson Hole, Wyoming this week, for outlook on economy and interest rates. Investors’ focus will be on U.S. Federal Reserve chair Jerome Powell’s speech on Friday, as central bankers from around the world assemble in Jackson Hole for their annual conference.
Bullions counter may witness range bound movement as yellow metal can move in range of 58300-58600 while silver also can move in range of 70000-71000. Gold prices steadied above 5-month lows on Monday after declining in the previous five sessions, as investors saddled up for central bankers’ gathering in Jackson Hole, Wyoming this week, for outlook on economy and interest rates. Investors’ focus will be on U.S. Federal Reserve chair Jerome Powell’s speech on Friday, as central bankers from around the world assemble in Jackson Hole for their annual conference. Rising Treasury bond yields and home mortgage rates may reduce support at the Fed for additional interest rate increases, the prospect of which have already been ebbing on the basis of weaker inflation. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 890.10 tonnes on Friday, from 887.50 tonnes on Thursday.
In base metal counter, Copper can trade on firm path as it can move in range of 722-732. China’s central bank injected more money into the market to support the economy. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 25.9 % from last Friday. Net long positions of copper on the London Metals Exchange (LME) are at a six-month high, partly fuelled by low Chinese copper inventories data. Chinese copper stocks readily available in the spot market, which includes stocks in warehouses of the Shanghai Futures Exchange, totalled 82,600 tonnes on Aug. 14, up 17.5% year-on-year. However, Chinese bonded warehouse inventory, at 57,399 tonnes on Aug. 11, was down 70% from the same time last year, data showed. Zinc may remain on sideways path as it can move in range of 208-212. Aluminum can move in range of 195-200.
ENERGY: Crude oil may witness some lower level buying as it may move in range of 6650-6850. Oil prices rose on Monday as global supply is tightening with lower exports from Saudi Arabia and Russia, offsetting nagging concerns about global demand growth amid high interest rates. Both front-month benchmark prices snapped a 7-week winning streak last week to post a weekly loss of about 2% after the U.S. dollar strengthened on the possibility that interest rates could remain higher for longer, with China’s worsening property crisis adding to concerns about its sluggish economic growth and oil demand. The world’s top crude importer is drawing on record inventories amassed earlier this year as Chinese refiners scale back purchases after supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, drove global prices above $80 a barrel. Natural gas prices may witness some short covering as it may move in range of 210-220.
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