Bullions counter may trade on mixed path as it were headed for their biggest monthly loss since June 2021 as impending interest rate hikes by the U.S. Federal Reserve sapped the non-yielding asset’s appeal. Gold can move in range of 55100-55500 while silver also can move in range of 63200-64400.
Bullions counter may trade on mixed path as it were headed for their biggest monthly loss since June 2021 as impending interest rate hikes by the U.S. Federal Reserve sapped the non-yielding asset’s appeal. Gold can move in range of 55100-55500 while silver also can move in range of 63200-64400. Fed Governor Philip Jefferson said on Monday he was under “no illusion” that inflation would return quickly to the Fed’s 2% target and noted that the Personal Consumption Expenditures (PCE) index remained “elevated.” For the month so far, the yellow metal was down about 5.8%, marking a steep reversal after hitting a ten-month high earlier this month. Since then, strong economic data has shown signs of a resilient U.S. economy, prompting several Fed policymakers to back further rate hikes to curb inflation.
In base metal counter, Copper can trade on weaker path as it can move in range of 745-760. On the domestic front, with regard to economic recovery, we need to pay attention to the upcoming Chinese manufacturing data. The current total inventory increased 128,800 mt from 196,600 mt before the Chinese New Year holidays. Zinc may trade with sideways path as it can move in range of 263-270. On the supply side, the production of some zinc smelters was restrained by power rationing, but the transactions in the spot market were weighed down by high zinc prices. Since the inventory decline cycle has not fully started, the zinc prices are expected to remain range bound under the pressure on the macro front. Aluminum can trade weaker path as it can move in range of 205-212. Aluminium ingot social inventory maintained the trend of accumulation, and spot transactions have not improved significantly. On the whole, rising inventory and unfavourable macro conditions will cap gains of aluminium prices.
ENERGY: Crude oil may trade on upside path as it can move in range of 6250-6370. Oil prices steadied after falling on strong U.S. manufacturing data that raised worries about further interest rate hikes dampening demand. The market will be looking out for the latest U.S. oil stocks data due from the American Petroleum Institute industry group on Tuesday and the government’s Energy Information Administration on Wednesday for further demand indicators. Natural gas prices can witness further buying as it can move towards 235 while taking support near 210. Natural gas climbed amid forecasts for colder weather and higher heating demand over the next two weeks.
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