Bullions counter may trade on positive note as yellow metal rose on Tuesday on a weaker dollar ahead of key of economic data from China and the United States due in the week, as well as U.S. Federal Reserve Chair Jerome Powell’s upcoming speech, to assess how rate hikes would pan out. Gold can move in range of 58300-58700 while silver also can move in range of 69500-71500.
Bullions counter may trade on positive note as yellow metal rose on Tuesday on a weaker dollar ahead of key of economic data from China and the United States due in the week, as well as U.S. Federal Reserve Chair Jerome Powell’s upcoming speech, to assess how rate hikes would pan out. Gold can move in range of 58300-58700 while silver also can move in range of 69500-71500. Economic data including China’s Purchasing Managers’ Index, and a key U.S. inflation gauge this week could provide a clearer picture on the macroeconomic situation. Fed Chair Jerome Powell would be speaking at the policy panel before the European Central Bank Forum in Sintra on banking at 1330 GMT on Wednesday.
In base metal counter, Copper can trade in green as it can move in range of 715-725. The premium for LME cash over the three-month copper contract jumped to a seven-month peak after a decline in stocks available to the market. Codelco, the world’s largest copper producer, halted some mining operations in Chile due to heavy rain last week. Zinc may remain on sideways path as it can move in range of 210-216. Aluminum can trade subdued path in range of 196-204. German business morale worsened for the second consecutive month in June after a slump in German manufacturing to a 37-month low while S&P cut its forecast for economic growth in China this year. Official PMIs from China, due this week, should provide some insight into the demand outlook from the world’s biggest metals
ENERGY: Crude oil may trade on positive path as it can move in range of 5670-5800. Oil prices edged higher on Tuesday, spurred by worries about political instability in Russia and possible supply disruptions, as well as U.S. demand hopes ahead of the summer driving season. A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern city of Rostov under a deal that halted their rapid advance on the capital. Oil fell about 3.6% last week on worries that further interest rate hikes by the U.S. Federal Reserve could sap demand as China’s economic recovery disappoints investors. Traders were also watching for signs of a pickup in demand for transport fuels, such as gasoline, in the United States ahead of the peak summer driving season. Natural gas prices may trade on upside path as it can move in range of 232-245.
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