Bullions counter may trade on weaker path as gold hovered near a two-month low on Monday, after strong U.S. economic data stoked fears that the Federal Reserve would implement more interest rate hikes to rein in inflation. Gold can move in range of 55150-55550 while silver also can move in range of 63000-64500.
Bullions counter may trade on weaker path as gold hovered near a two-month low on Monday, after strong U.S. economic data stoked fears that the Federal Reserve would implement more interest rate hikes to rein in inflation. Gold can move in range of 55150-55550 while silver also can move in range of 63000-64500. The personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, rose 0.6% last month, after gaining 0.2% in December. U.S. Treasury Secretary Janet Yellen told that new data showing inflation jumped unexpectedly in January signals the fight against inflation “is not a straight line” and more work is needed. Money markets expect the Fed’s target rate to peak at 5.4% in July, from a current range of 4.50% to 4.75%.
In base metal counter, Copper can trade on weaker path as it can move in range of 740-756. On the macro front, the annualised US PCE in January exceeded expectations and the previous value, showing that US inflation is still high, which further strengthened the market’s strong expectations for the Fed to remain hawkish. The US index rose, weighing down copper prices. Zinc may trade with sideways path as it can move in range of 260-270. Aluminum can trade weaker path as it can move in range of 202-212. The US dollar index rose again, putting pressure on metal prices. The social inventory of aluminium ingot has not yet entered a destocking cycle. High inventory suppressed the confidence of bulls to a certain extent.
ENERGY: Crude oil may trade on mixed path as it can move in range of 6250-6420. Oil was little changed in early trade on Monday, as Russia’s plans to deepen oil supply cuts continued to support prices, while increasing global inflation risks and rising crude inventories in the United States weighed. Russia plans to cut oil exports from its western ports by up to 25% in March versus February, exceeding its previously announced production cuts of 5% of its output during the month. Despite oil inventories in the United States at their highest since May 2021, the U.S. Federal Reserve meeting signalling further monetary tightening and a strong rally in the dollar last week, prices edged higher early on Monday before paring some gains. Natural gas prices can further buying as it can recover towards 230 while taking support near 200.
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