Bullions counter may trade on subdued path on stronger greenback but investors refrained from making large bets ahead of Federal Reserve Chairman Jerome Powell’s congressional testimony. Powell delivers a semi-annual monetary policy testimony to the U.S. House Financial Affairs Committee at 7.30 pm Indian time and market participants will be looking out for the central bank’s thinking on need for further interest rate increases amid hawkish remarks from policymakers.
Bullions counter may trade on subdued path on stronger greenback but investors refrained from making large bets ahead of Federal Reserve Chairman Jerome Powell’s congressional testimony. Powell delivers a semi-annual monetary policy testimony to the U.S. House Financial Affairs Committee at 7.30 pm Indian time and market participants will be looking out for the central bank’s thinking on need for further interest rate increases amid hawkish remarks from policymakers. Two Federal Reserve policymakers and an economist nominated to join them on the Fed’s Washington-based board on Tuesday said their focus is on bringing down too-high inflation so that the U.S. economy can get back to sustainable growth. Gold can move in range of 58600-59000 while silver also can move in range of 69500-70800.
In base metal counter, Copper can trade on firm path as it can move in range of 730-740. Copper prices saw a temporary rise after China announced a new round of stimulus measures, which included interest rate reductions andthe potential allocation of funds towards infrastructure and property sectors. The rally comes in contrast to what has proven a lackluster economic recovery. While China’s services sector continues to post strong growth, its manufacturing sector performed inconsistently over recent months. Indeed, China is both the world’s largest producer and consumer of commodities. Zinc may remain on weaker path as it can move in range of 212-221. Aluminum can trade subdued path in range of 200-205.
ENERGY: Crude oil may witness strong movement upside as it can move in range of 5820-5980. Oil prices rebounded early on Wednesday, recovering after two straight sessions of losses, as expectations of hawkish Fed talk later in the afternoon and possible U.S. crude stock draws in outweighed China demand worries. A possible drawdown in U.S. crude stocks supported prices as well, with Reuters poll among five analysts estimating that crude stockpiles fell by about 400,000 barrels on average in the week to June 16 on average. Official U.S. oil inventory data from the American Petroleum Institute industry group will be released later on Wednesday and the Energy Information Administration on Thursday, both reports delayed by a day following the Juneteenth public holiday on Monday. Natural gas prices may remain in red as it can move in range of 200-210.
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