Bullions counter may trade with sideways bias as traders awaited U.S. inflation data, due later in the day, to gauge the Federal Reserve’s stance on further interest rate hikes. Gold can move in range of 56500-57000 while Silver also can move in range of 67800-69300. Investors are now awaiting U.S. personal consumption expenditures (PCE) data, the Fed’s preferred inflation measure, at 7 pm for cues on the central bank’s path forward.
Bullions counter may trade with sideways bias as traders awaited U.S. inflation data, due later in the day, to gauge the Federal Reserve’s stance on further interest rate hikes. Gold can move in range of 56500-57000 while Silver also can move in range of 67800-69300. Investors are now awaiting U.S. personal consumption expenditures (PCE) data, the Fed’s preferred inflation measure, at 7 pm for cues on the central bank’s path forward. Investors broadly expect the Fed to scale back rate hikes to 25 basis points (bps) at its Jan. 31-Feb. 1 meeting, from 50 bps in December. Lower interest rates tend to be beneficial for bullion as it lowers the opportunity cost of holding the non-yielding asset. On Thursday, bullion prices fell 1% after data showed the U.S. economy grew at a faster pace in the December quarter than economists had expected, prompting bets that the Fed to keep interest rates higher for longer.
In base metal counter, Copper can trade on upside path as it can move in range of 780-792. The world’s refined copper market saw an 89,000-tonne deficit in November, compared with a surplus of 68,000 tonnes in October, the International Copper Study Group (ICSG) said in its latest monthly bulletin. World refined copper output in November was 2.2 million tonnes, while consumption was 2.3 million tonnes. For the first eleven months of 2022, the market was in a 384,000-tonne deficit compared with a 381,000-tonne deficit in the same period a year earlier, the ICSG said. Zinc may move on firm path as it can move in range of 298-306. Aluminum can trade on upside path as it can move range of 224-230.
ENERGY: Crude oil may trade on positive path as it can test 6750 while taking support near 6550. Oil prices buoyed by stronger-than-expected U.S. economic growth and hopes of a rapid recovery in Chinese demand as COVID-19 cases and deaths plunged from last month’s peak levels. OPEC+ delegates will meet next week to review crude production levels, amid steady support for crude prices from strong demand for jet fuel and diesel. The U.S. Federal Reserve will decide on another rate hike, as inflation cools and gross domestic product improves. Critically ill COVID-19 cases in China are down 72% from a peak early this month while daily deaths among COVID-19 patients in hospitals have dropped 79% from their peak, pointing to a normalisation of the Chinese economy and boosting expectations of a recovery in oil demand. Natural gas prices can remain on weaker path as it can move range of 220-255.
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