Bullions counter may remain under pressure as investor’s awaited minutes of the U.S. Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes. Gold can move in range of 55800-56300 while silver also can move in range of 64800-66500.
Bullions counter may remain under pressure as investor’s awaited minutes of the U.S. Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes. Gold can move in range of 55800-56300 while silver also can move in range of 64800-66500. Data on Tuesday showed U.S. business activity unexpectedly rebounded in February to its highest level in eight months – the latest in a stream of data that have shown signs of a resilient U.S. economy and a tight labour market. The Fed is expected to raise benchmark rates above 5% by May with a peak seen at 5.352% in July. The dollar index eased 0.1%, making greenback-priced bullion less expensive for buyers holding other currencies. Benchmark U.S. 10-year Treasury yields hit their highest since November.
In base metal counter, Copper can trade mixed path in range of 774-785. On the macro front, US business activity rebounded in February, hitting its highest level in eight months, and strong economic data once again showed the resilience of the US economy. But the market is also waiting for more data to judge the direction of the Fed’s interest rate hike. Zinc may trade with sideways path as it can move in range of 270-278. Aluminum can trade weaker path as it can move in range of 208-213. On the supply side, production cuts in Yunnan continued to support aluminium prices. On the demand side, downstream buyers turned more cautious after aluminium prices went up. Market players will need to pay attention to the pace of downstream demand recovery. In view of production cuts in Yunnan and weaker-than-expected demand recovery, it is expected that aluminium prices will remain rangebound in the short term.
ENERGY: Crude oil may trade on weaker path as it can move in range of 6270-6420. Oil prices were steady on Wednesday as investors await the U.S. Federal Reserve’s comments after recent data pointed to the possibility of more interest rates hikes, which may lower economic growth and limit global fuel demand. The U.S. Fed will release the minutes of its latest meeting on Wednesday, which will give traders a glimpse of how high officials are projecting interest rates will go after recent data showed stronger-than-expected U.S. employment and consumer prices. Expectations of tighter global supplies and rising demand from China have recently lent support to oil prices. Natural gas prices can tad further lower as it can dip towards 165 while taking resistance near 190.
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