Bullions counter may remain under selling pressure investors awaited a key U.S. Federal Reserve meeting that could see the central bank pausing interest rate hikes after July. Gold can move in range of 59000-59500 while silver also can move in range of 74000-75500.
Bullions counter may remain under selling pressure investors awaited a key U.S. Federal Reserve meeting that could see the central bank pausing interest rate hikes after July. Gold can move in range of 59000-59500 while silver also can move in range of 74000-75500. The dollar index was steady, holding near its over one-week peak hit on July 20, limiting gold’s rise, as a stronger dollar makes the metal more expensive for holders of other currencies. This week, long with the Fed, the European Central Bank (ECB) and Bank of Japan decisions all come over the Wednesday-Friday 48-hour period. Markets are fully priced for quarter point hikes from the Fed and ECB, so the focus will be on what Fed Chair Jerome Powell and ECB President Christine Lagarde say about the future. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.57% to 919.00 tonnes on July 21 from 913.80 tonnes on July 20.
In base metal counter, Copper can trade on positive path as it can move in range of 721-732. Chinese authorities unveiled measures to boost consumption of automobile and electronics items as part of a broader drive to shore up the country’s faltering economy. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 5.8% from last Friday, the exchange said. The global refined copper market showed a 65,000 metric tons deficit in May, compared with a 33,000 metric tons surplus in April, the International Copper Study Group (ICSG) said in its latest monthly bulletin. For the first 5 months of the year, the market was in a 287,000 metric tons surplus compared with a 74,000 metric tons deficit in the same period a year earlier, the ICSG said. Zinc may remain on sideways path as it can move in range of 210-216. Aluminum can move in range of 196-202.
ENERGY: Crude oil may trade on firm path as it may move in range of 6250-6380. Oil prices eased on Monday as traders await more rate hike cues from U.S. and European central banks, with tightening supply and hopes for Chinese stimulus underpinning Brent at $80 a barrel. The benchmarks rose 1.5% and 2.2% respectively last week, their fourth straight of week of gain, as supply is expected to tighten following OPEC+ cuts. Investors have priced in quarter-point hikes from the Federal Reserve and European Central Bank this week so the focus will be on what Fed Chair Jerome Powell and ECB President Christine Lagarde say about future rate hikes. Rising interest rates have dampened investments and strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies. Natural gas prices may trade on mixed path in range of 217-225.
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