Bullions counter can witness further weakness amid bounce back in greenback as market participants awaiting new indications on the Federal Reserve’s rate hike plans. Gold can move in range of 54500-54900 while Silver also can move in range of 68000-69500. Bullion is on track for a yearly decline of about 1% pressured by aggressive U.S. rate hikes.
Bullions counter can witness further weakness amid bounce back in greenback as market participants awaiting new indications on the Federal Reserve’s rate hike plans. Gold can move in range of 54500-54900 while Silver also can move in range of 68000-69500. Bullion is on track for a yearly decline of about 1% pressured by aggressive U.S. rate hikes. However, prices have risen nearly $200 from a more than two-year low hit in September on hopes that the U.S. central bank might slow its pace of interest rate hikes. The Fed slowed its pace of rate hikes to 50 basis points (bps) in December after four consecutive increases of 75 bps each, while Fed Chair Jerome Powell has emphasized the need to keep rates elevated for a time to fight inflation.
In base metal counter, Copper can trade lower in range of 718-730. In terms of fundamentals, the inventory in Guangdong rose sharply for the first time, mainly due to the increase in arrivals and limited shipments flowing out of the warehouses in Guangdong. In addition, as the end of the year approaches, the participation of traders in the market continued to decrease. The demand from downstream manufacturers also weakened, and the overall market transactions were slack. Zinc may move on mixed path as it can move in range of 268-276. Aluminum can in narrow range of 205-212. At present, the macro sentiment has picked up slightly, but the fundamentals were relatively poor. The increase in domestic aluminium production may be lower than expected in December due to power rationing in south-west China. On the demand side, domestic downstream processing sectors are currently in the off-season.
ENERGY: Crude oil may trade on subdued path as it can test 6400 while taking resistance near 6600 in MCX. Oil prices ticked down on Thursday as surging COVID-19 cases in China dimmed hopes of a recovery in fuel demand in the world’s second-biggest oil consumer. Oil markets were also buffeted by expectations of another U.S. interest rate hike in the United States, as Federal Reserve tries to limit price rises in a tight labour market. U.S. crude oil inventories fell less than expected, by about 1.3 million barrels, in the week ended Dec. 23, according to market sources citing American Petroleum Institute figures. Natural gas prices can witness some short covering after recent steep fall as it can test 420 while taking support near 385.
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