Bullion counter can trade on weaker path as firm greenback and fear of faster interest rate hike by Fed to tackle inflation continue to weigh on the prices. The dollar index scaled a fresh peak since 2002 buoyed by a hawkish Fed, making the greenback-priced bullion more expensive for buyers holding other currencies. Gold (Oct) can test 49100 while taking resistance near 49500 while Silver (Dec) can move towards 55500 while taking resistance near 56500.
Bullion counter can trade on weaker path as firm greenback and fear of faster interest rate hike by Fed to tackle inflation continue to weigh on the prices. The dollar index scaled a fresh peak since 2002 buoyed by a hawkish Fed, making the greenback-priced bullion more expensive for buyers holding other currencies. Gold (Oct) can test 49100 while taking resistance near 49500 while Silver (Dec) can move towards 55500 while taking resistance near 56500. Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.
In base metal counter, Copper can trade in red as it can test 615. Last week, bonded zone inventory continued to decrease due to the peak season of September and October and the tight supply of copper scrap. At present, the macro environment is bearish, and the pressure of the high US dollar index on copper prices will not ease in the short term. Zinc may move sideways in range of 265-285 in MCX. Aluminum can remain subdued as it can test 180 in MCX. Meanwhile with expanding output cuts by aluminium smelters in Yunnan and gradual recovery of downstream demand, the short-term aluminium prices are expected to perform strongly.
Crude oil may remain on weaker path amid firm dollar index and fear of slowdown .Overall it can move in range of 6300-6500. Meanwhile crude could find some support as Russia reinforces troops for the war on Ukraine and European Union sanctions on Russian oil are set to take effect in December. However investors will focus on the Organization of the Petroleum Exporting Countries and allies led by Russia, together called OPEC+ meeting on Oct. 5. Data last week showed OPEC+ fell short of its output target by 3.58 million barrels per day in August, a bigger shortfall than in the previous month. Natural gas prices may remain on weaker path as it can test of 560 in MCX.
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