BULLIONS

Bullions counter may witness profit booking at higher levels after the bounce back in greenback. Gold can move in range of 59300-59700 while silver also can move in range of 74500-76500. Gold prices have been supported by expectation that the Fed would increase rates for the last time next week in its current tightening cycle. Most economists polled by Reuters expect a 25-basis point hike at the July 25-26 Fed meeting. China’s foreign exchange regulator said it would keep the yuan stable at balanced levels in a forceful manner and prevent sharp volatilities in the yuan exchange rate. Next week, market participants will also focus on a Bank of Japan meeting amid speculation of imminent policy tweaks, while the European Central Bank is expected to raise interest rates by 25 basis points.

BASE METALS

In base metal counter, Copper can trade on positive path as it can move in range of 725-740. Zambia’s copper output will fall by more than 10% this year to the lowest in 14 years in what would be a significant blow to the southern African country’s revenue and economic growth. Copper production, which accounts for more than 70% of export earnings, will plunge to 682,431 tons, the Ministry of Finance & National Planning said in a report this week. That would be the lowest level since 2009, and marks the third straight year of declining output after peaking in 2020, even as prices remain elevated for the metal.  Zinc may remain on sideways path as it can move in range of 210-216.  Aluminum can move in range of 193-200.

ENERGY: Crude oil may trade on firm path as it may move in range of 6180-6320. Brent oil prices were little changed and were set to close flat for the week after three straight weeks of gains, as markets weigh lower U.S. crude inventories and tapering interest rate hikes against weak Chinese economic data that could cap demand. Supporting prices, U.S. crude inventories  fell last week, supported by a jump in crude exports as well as higher refinery utilization, the Energy Information Administration (EIA) said on Wednesday. In addition, recent data, including lower-than-expected inflation and moderating job growth, have convinced many investors and analysts that the Federal Reserve’s expected July rate hike will be the last of its current tightening cycle. Natural gas prices may trade on volatile path in range of 220-230.

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Disclosure

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