Bullions counter may trade sideways path as the dollar pulled back from a two-month high, but bullion was poised for a third straight weekly fall as traders assessed the progress of U.S. debt ceiling negotiations and the Federal Reserve’s next policy move. Gold can move in range of 59400-59750 while silver also can move in range of 69500-71200.
Bullions counter may trade sideways path as the dollar pulled back from a two-month high, but bullion was poised for a third straight weekly fall as traders assessed the progress of U.S. debt ceiling negotiations and the Federal Reserve’s next policy move. Gold can move in range of 59400-59750 while silver also can move in range of 69500-71200. U.S. President Joe Biden and top congressional Republican Kevin McCarthy on Thursday appeared to be nearing a deal to cut spending and raise the government’s $31.4 trillion debt ceiling, with little time to spare to head off the risk of default. On the interest rate front, markets are now pricing in a 39% chance of a 25 basis point hike in June and seeing cuts no sooner than September, according to the CME FedWatch tool.
In base metal counter, Copper can witness lower level buying as it can move in range of 700-710. On the macro front, U.S. data released last night showed that the economy remains resilient even amid the Fed’s aggressive rate hike cycle, and the U.S. dollar index rose. In addition, the optimism of the US debt ceiling negotiations began to emerge, and the risk appetite for assets has increased. Copper prices fell to a new low yesterday. In terms of consumption, most market participants are pessimistic about the market outlook. Zinc may remain on subdued path as it can move in range of 205-212. Aluminum can trade on weaker path as it can move in range of 205-211.
ENERGY: Crude oil may trade on weaker note as it can move in range of 5850-6150. Oil prices softened in early trade on Friday, weighed on by conflicting messages from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting and a stronger dollar. Russian President Vladimir Putin said on Wednesday that energy prices were approaching “economically justified” levels, also indicating there could be no immediate change to the group’s production policy. The higher dollar, which has strengthened for a fifth straight session against a basket of major peers, with U.S. data pointing to a resilient economy even after an aggressive rate hike cycle by the Federal Reserve, placed further downside pressures to oil futures. A stronger greenback makes dollar-denominated commodities more expensive for those holding other currencies, denting demand. Natural gas prices may trade volatile path in range of 200-210.
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