Bullions counter may trade in narrow range as yellow metal in international markets eased due to a firmer dollar, while investors digested the U.S. central bank’s hints at a potential pause in its rate-hike trajectory. Gold can move in range of 59200-59800 while silver also can move in range of 69500-70600.
Bullions counter may trade in narrow range as yellow metal in international markets eased due to a firmer dollar, while investors digested the U.S. central bank’s hints at a potential pause in its rate-hike trajectory. Gold can move in range of 59200-59800 while silver also can move in range of 69500-70600. Non-yielding bullion, which becomes more attractive in a low-interest-rate environment, gained 2% after the Federal Reserve signalled it might pause further rate increases after the recent collapse of two U.S. banks, and pointed to just one more rate hike this year. Gold shot over the $2,000-level to a one-year peak earlier this week on safe-haven demand, but has since pulled back from those levels, although financial system uncertainties remain. U.S. Treasury Secretary Janet Yellen on Thursday sought to reassure jittery investors that American bank deposits were safe and promised policymakers had more firepower to battle any crisis.
In base metal counter, Copper can trade witness some bounce path as it can move in range of 770-780. On the macro front, the Federal Reserve is close to stopping interest rate hikes, while the Swiss National Bank and the Bank of England have pushed forward interest rate hikes. The US dollar index fell overnight, bolstering copper prices. Zinc may trade in range of 252-265. Aluminum can trade on firm path as it can move in range of 201-208. On the fundamentals, the resumption of production by aluminum smelters in Sichuan, Guizhou and other places has led to a slight recovery on the supply side. Downstream consumption continued to pick up, driving domestic aluminum ingot social inventory to fall rapidly. The short-term aluminum prices may rally slightly, driven by improving fundamentals and macro sentiment.
ENERGY: Crude oil may remain under pressure as it can move in range of 5700-5840. Oil prices extended the previous day’s losses, on worries about potential oversupply after U.S. Energy Secretary Jennifer Granholm said refilling the country’s Strategic Petroleum Reserve (SPR) may take several years. Both benchmarks were still on track for a weekly gain of about 3%-4%, recovering from their biggest weekly declines in months last week due to the banking sector crisis and worries about a possible recession. Deputy Prime Minister Alexander Novak said a previously announced cut of 500,000 barrels per day (bpd) in Russia’s oil production would be from an output level of 10.2 million bpd in February. Natural gas prices can trade lower as it can move in range of 175-205.
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