Bullions counter may trade on mixed path. Overall yellow metal can move in range of 58300-58700 while silver also can move in range of 71000-73000. The dollar index was below the two-month highs, while a rally that took U.S. Treasury yields to nearly 16-year highs took a pause, giving some respite to the non-yielding gold. The annual Jackson Hole Symposium in Wyoming later this week will be monitored for any hints on how high interest rates can go, with a particular focus on Federal Reserve Chair Jerome Powell’s speech on Friday.
Bullions counter may trade on mixed path. Overall yellow metal can move in range of 58300-58700 while silver also can move in range of 71000-73000. The dollar index was below the two-month highs, while a rally that took U.S. Treasury yields to nearly 16-year highs took a pause, giving some respite to the non-yielding gold. The annual Jackson Hole Symposium in Wyoming later this week will be monitored for any hints on how high interest rates can go, with a particular focus on Federal Reserve Chair Jerome Powell’s speech on Friday. SPDR Gold Trust, the world’s largest gold-backed ETF, said holdings fell 0.5% on Tuesday, sliding back to their lowest levels since mid-January 2020.
In base metal counter, Copper can trade on firm path as it can move in range of 725-737. On the macro front, the minutes of the Fed’s discount rate meeting showed that the boards of the New York Fed and the Atlanta Fed supported keeping the discount rate unchanged in July. In addition, the total number of existing home sales in the United States recorded an annualized 4.07 million in July, which was lower than the expected 4.15 million and was the lowest since January 2023. In terms of fundamentals, due to the inflow of imported copper into the spot market in east China yesterday, the spot quotes fell. There will be additional inflows of imported copper. In south China, warrants began to be offered for sale due to previous high spot quotes, lowering spot quotes. Zinc may remain on sideways path as it can move in range of 209-213. Aluminum can move in range of 197-202.
ENERGY: Crude oil may remain on weaker path as it may move in range of 6550-6700. Oil prices weighed weak demand indicators from top importer China and the prospect of further U.S. rate hikes against potential supply tightness. Markets await hints on the outlook for interest rates when Federal Reserve officials and policy makers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, for an annual meeting later this week. On the supply side, Saudi Arabia has volunteered to cut output by another 1 million barrels per day (bpd) from July through September, and Russia plans to reduce exports in August by 500,000 bpd. These moves are part of a deal among members of the Organization of the Petroleum Exporting Countries and its allies, a grouping know as OPEC+, to curb supplies and support prices. Natural gas prices may trade lower as it may move in range of 205-217.
|Important Pivot Levels|
COMEX($) AND NYMEX($)
|CRUDE OIL WTI||SPOT||74||77||83||88|
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