Bullions counter may trade weaker path as yellow metal as a tentative deal sealed over the weekend to suspend the U.S. debt ceiling coupled with jitters around higher-for-longer interest rates dampened demand for the non-yielding metal. Gold can move in range of 59100-59600 while silver also can move in range of 70000-72000.
Bullions counter may trade weaker path as yellow metal as a tentative deal sealed over the weekend to suspend the U.S. debt ceiling coupled with jitters around higher-for-longer interest rates dampened demand for the non-yielding metal. U.S. President Joe Biden said on Sunday he had finalized a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025 and that the deal was ready to move to Congress for a vote. Trading will likely be thin on Monday, with the United States and many markets in Europe closed for holidays. Gold can move in range of 59100-59600 while silver also can move in range of 70000-72000. Moreover, data on Friday showed U.S. consumer spending increased more than expected in April and that inflation accelerated.
In base metal counter, Copper can witness further buying as it can move in range of 705-720. On the macro front, the U.S. dollar index rose after the April PCE data was released. The core PCE price index in April increased by 4.7% year-on-year, exceeding market expectations. The market bets that the Fed will keep high interest rates for a longer period of time. copper inventories in major Chinese markets fell 4,300 mt to 118,400 mt from last Monday, down 5,100 mt from two Fridays ago. Inventories have fallen for three consecutive weeks. There was an inflow of imported copper in east China, and the high spot premiums in east China attracted inflows of goods from various places. Therefore, the inventory decline was small. Zinc may remain on subdued path as it can move in range of 207-218. Aluminum can trade on weaker path as it can move in range of 206-210.
ENERGY: Crude oil may trade on upside path as it can move in range of 5950-6150. Oil prices rose on Monday after U.S. leaders reached a tentative debt ceiling deal, possibly averting a default in the world’s largest economy and oil consumer, although concerns about further interest rate hikes capped gains. Trade is expected to be subdued on Monday because of UK and U.S. holidays. U.S. President Joe Biden and House Speaker Kevin McCarthy on Saturday finalised an agreement in principle to suspend the $31.4 trillion debt ceiling and cap government spending for the next two years. Both leaders expressed confidence on Sunday that members of the Democratic and Republican parties will vote to support the deal. Natural gas prices may trade positive path in range of 197-207.
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