Bullions counter may trade lower on stronger greenback as yellow metal were little-changed on Thursday on renewed talks of interest rate hikes this year by the U.S. Federal Reserve, keeping the bullion pinned near a three-month low hit in the previous session. Gold can move in range of 58400-58800 while silver also can move in range of 68300-69500.
Bullions counter may trade lower on stronger greenback as yellow metal were little-changed on Thursday on renewed talks of interest rate hikes this year by the U.S. Federal Reserve, keeping the bullion pinned near a three-month low hit in the previous session. Gold can move in range of 58400-58800 while silver also can move in range of 68300-69500. Fed’s Powell in his remarks to lawmakers on Capitol Hill said further rate increases are “a pretty good guess” of where the U.S. central bank is heading if the economy continues in its current direction. Markets are pricing in a 72% chance of a 25 basis point hike next month, according to CME FedWatch tool. Atlanta Fed President Raphael Bostic, meanwhile, became the first policymaker to suggest the Fed would need to wait at least past its July meeting to decide on further rate increases.
In base metal counter, Copper can trade on mixed path as it can move in range of 725-735. The copper price rose on Wednesday, underpinned by tightening supplies ahead of a long weekend in China. Chinese markets will be closed on Thursday and Friday for holidays. Higher offers amid tight supply in the spot market lifted copper premium to an eight-month high of 640 yuan a tonne. Supply has tightened because of recent unfavorable import conditions, partly due to a weakening yuan, making it more costly to buy the metal. Market participants expect to see some more copper exports from China, which is traditionally a buyer of the metal. Zinc may remain on sideways path as it can move in range of 215-221. Aluminum can trade subdued path in range of 198-204.
ENERGY: Crude oil may witness strong movement upside as it can move in range of 5900-6000. Oil prices held on to most of the previous day’s gains in early trade on Thursday as markets weighed an unexpected draw in U.S. crude oil stocks against the prospect of weaker demand after the Federal Reserve chairman hinted at further interest rate hikes. Supporting the market, U.S. crude oil inventories fell by about 1.2 million barrels in the week ended June 16, sources said citing data from the American Petroleum Institute, an industry group, defying analysts’ forecasts for a build of 300,000 barrels. Natural gas prices may trade in green as it can move in range of 205-220.
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