Bullions counter can extend its gains as the dollar weakened, while investors awaited U.S. economic data amid hopes of slower interest rate hikes by the Federal Reserve. Gold can move in range of 56700-57200 while Silver also can move in range of 67600-69000. Investors are now focused on the U.S. fourth quarter GDP growth estimates due on Thursday.
Bullions counter can extend its gains as the dollar weakened, while investors awaited U.S. economic data amid hopes of slower interest rate hikes by the Federal Reserve. Gold can move in range of 56700-57200 while Silver also can move in range of 67600-69000. Investors are now focused on the U.S. fourth quarter GDP growth estimates due on Thursday. Traders are mostly pricing in a 25 basis point (bp) rate hike by the Fed at its Jan. 31-Feb. 1 policy meeting, after slowing its pace to 50 bps in December, following four straight 75-bp hikes. On the physical front, India is expected to slash the import duty on gold, which could lift retail sales by making the metal cheaper ahead of peak demand season in the world’s second-biggest bullion consumer.
In base metal counter, Copper can trade on upside path as it can move in range of 780-790. Copper prices have strongly rebounded in recent weeks, due to reopening in China, which is expected to spur additional demand, and to the long-term bullishness of the market for metals necessary for the energy transition. According to Glencore’s estimates, under the net-zero emissions pathway of the International Energy Agency (IEA), the world will be more than 50 million tons short of copper between 2022 and 2030. Zinc may move on firm path as it can move in range of 295-305. Aluminum can trade on upside path as it can move range of 222-228.
ENERGY: Crude oil may remain on firm path as it can test 6800 while taking support near 6600. Crude oil prices rose on prospects of demand recovery from top importer China and on the global economic outlook ahead of company earnings. Crude oil prices in physical markets have started the year with a rally, as China, no longer held back by pandemic controls, has shown signs of more buying and as traders have worried that sanctions on Russia could tighten supply. U.S. investors are fairly certain the Federal Reserve will implement a small interest rate rise next week even as it remains committed to taming inflation, which recent data shows is slowing. Natural gas prices can witness lower level buying as it can move in range of 260-285.
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