Bullions counter may witness some short covering due to decline in greenback .The yellow metal can move in range of 58600-59000 while silver also can move in range of 72500-74500.
Bullions counter may witness some short covering due to decline in greenback .The yellow metal can move in range of 58600-59000 while silver also can move in range of 72500-74500. Last week bullion counter was under pressure as U.S. Federal Reserve Chair Jerome Powell’s hawkish stance on interest rates. Speaking at the annual gathering in Jackson Hole, Wyoming on Friday, Powell left open the possibility of further rate increases to cool still-too-high inflation and stressed the U.S. economy’s surprising strength. Highlighting investor sentiment toward bullion, data on Friday showed COMEX gold speculators cut net long position by 20,845 contracts to 25,695 in week ended Aug. 22. Cleveland Federal Reserve Bank Loretta Mester said on Saturday that beating inflation will probably require one more U.S. interest rate hike and then going on hold for “a while.”
In base metal counter, Copper can witness some bounce back as it can move in range of 728-740. Prices were boosted by potential demand uplift from support for China’s yuan currency and seasonal strength in consumption. Investors are now shifting their focus to September and October, traditionally strong consumption months for copper in China. Output expanded in China and the Democratic Republic of Congo (DRC) while declining elsewhere, but overall total refined copper production rose by 7% to 13.5 million tons. Global copper mine production increased by 2% due to several start-ups and expansions and despite operational issues in Chile, China, Indonesia, Panama and the United States, and protests by communities aimed at impeding mining operations in Peru. Zinc may remain on sideways path as it can move in range of 213-217. Aluminum can move in range of 196-202.
Crude oil can show positive movement as it may move in range of 6550-6670. Oil prices were marginally lower as investors stayed fretful over the pace of economic growth in China, and the prospect of further U.S. interest rate hikes that could dampen fuel demand. In the United States, energy firms cut the number of active oil rigs for a ninth month in August, Baker Hughes said in a report. Also, Tropical Storm Idalia has formed in the Caribbean and could strengthen into a hurricane and hit Florida . However, “the narrative of tightening supply,” mainly on the back of falling oil inventories and supply cuts by the OPEC+ collective of oil producers, has been eroded by prospects of easing sanctions on Iran and Venezuela. Natural gas prices may trade higher as it can move in range of 215-235.
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