Bullion counter may remain in red as surge in greenback amid hawkish tone from Federal Reserve Chair Jerome Powell’s to tame rising inflation kept prices under pressure. Gold (Oct) can test 50600 while facing resistance near 51000 in domestic markets.
Bullion counter may remain in red as surge in greenback amid hawkish tone from Federal Reserve Chair Jerome Powell’s to tame rising inflation kept prices under pressure. Gold (Oct) can test 50600 while facing resistance near 51000 in domestic markets. Silver (Dec) can tumble towards 54000 while taking resistance near 57000. Americans are headed for a painful period of slow economic growth and possibly rising joblessness as the Fed raises interest rates to fight high inflation, Powell warned on Friday at the Jackson Hole central banking conference in Wyoming. Speculators cut their net long COMEX gold position by 15,910 contracts to 30,326 in the week to Aug. 23, data from the U.S. Commodity Futures Trading Commission showed.
Copper can trade on lower path as it can test 660 in MCX. Zinc may head lower 310 while taking resistance near 320 in MCX. LME and SHFE base metals remained under pressure as US Fed Chair Powell’s speech at Jackson Hole symposium last week stated that the US still needs the tight monetary policy for some time until the inflation is under control. Aluminum can test 212 in MCX. Due to power shortages, the 1.07 million mt of installed aluminium capacity in Sichuan has been virtually shut down completely. In addition, aluminium smelters in Chongqing and Henan have also reduced production. The output cuts by domestic and overseas aluminium smelters have intensified supply concerns.
Crude oil may extend its recent gains as it can test 7700 in MCX on expectation of output cut by OPEC countries and ongoing conflict in Libya. Heavy clashes in Libya’s capital which killed 32 people on the weekend sparked concern that the country could slide into a full-blown conflict, which could again disrupt crude supply from the OPEC nation. Oil prices have been well supported by hints from Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, that they could cut output in order to balance the market. Natural gas prices can remain in green as it can test 780 while taking support near 740 in MCX.
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