Bullion counter may extend last week losses as stronger dollar index and expectations of further interest rate hikes from the U.S. Federal Reserve is keeping the sentiment subdued.
Bullion counter may extend last week losses as stronger dollar index and expectations of further interest rate hikes from the U.S. Federal Reserve is keeping the sentiment subdued. Gold can dip towards 51200 while taking resistance near 51600 in domestic markets. Silver can test 54500 while taking resistance near 56500. Investors will focus on comments by Fed Chair Jerome Powell when he addresses an annual global central banking conference in Jackson Hole, Wyoming, on Friday. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.32% to 989.01 tonnes on Friday from 985.83 tonnes on Thursday.
Copper can trade in firm note as it can test 680 while taking support near 665 in MCX. Copper can take some relief on stimulus measures by Beijing, which aim to shore up infrastructure spending in the country. The People’s Bank of China is expected to cut lending rates further, in order to shore up economic growth. Recently Prices of the copper have been impacted by slowing industrial activity in China, as Beijing’s strict zero-COVID policy shut down factories in major industrial hubs. Zinc may remain upbeat as it can test 321 while taking support near 312 in MCX. Zinc stocks in LME registered warehouses, at 75,000 tonnes, have plummeted by 75% since April due to draws to meet deficits.
Crude oil can trade in red as fears of aggressive U.S. interest rate hikes may lead to a global economic slowdown. It can test 7000 levels while facing resistance near 7200 on domestic bourses. Strength in the U.S. dollar , which was hovering at around a five-week high, also weighed on crude prices because it makes oil more expensive for buyers in other currencies. The European Union and United States said last week they were studying Iran’s response to what the EU has called its “final” proposal to revive the deal, under which Tehran curbed its nuclear program in return for economic sanctions relief. Natural gas prices can trade on sideways path after the recent rally as it can move in range of 725-745 in MCX.
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