Bullions counter may trade on positive path as Gold climbed on Wednesday as the U.S. dollar, Treasury yields and Asian stocks stumbled after Fitch downgraded the United States’ coveted triple-A credit rating, souring confidence in the economy and shoring up interest in safe-haven bullion. Gold can move in range of 59300-59800 while silver also can move in range of 73000-75000.
Bullions counter may trade on positive path as Gold climbed on Wednesday as the U.S. dollar, Treasury yields and Asian stocks stumbled after Fitch downgraded the United States’ coveted triple-A credit rating, souring confidence in the economy and shoring up interest in safe-haven bullion. Gold can move in range of 59300-59800 while silver also can move in range of 73000-75000. Fitch after the Wall Street close on Tuesday downgraded the U.S. government’s credit rating from AAA to AA+, citing fiscal deterioration over the next three years and growing general government debt burden. Gold, which is priced in dollars, is a favoured safe-haven investment in times of stress and economic uncertainty. Gold dropped 1% and hit a three-week low on Tuesday as the dollar firmed after a relatively solid data on U.S. manufacturing and construction in June offset a decline in job openings last month.
In base metal counter, Copper can trade on positive path as it can move in range of 738-748. On the macro front, relatively solid U.S. manufacturing and construction data released last night outweighed the drop in job vacancies to their lowest level in more than two years. In terms of prices, as Fed officials emphasized that whether to continue raising interest rates still needs to pay attention to economic data, the market is waiting for more US economic data to be released later this week. Copper prices are expected to remain range-bound at high levels. Zinc may remain on sideways path as it can move in range of 220-230. Aluminum can move in range of 198-204.
ENERGY: Crude oil may trade on strong path as it may move in range of 6700-6850. Oil prices surged by almost 1% on Wednesday, trading near their highest since April, as crude and fuel products inventory data showing robust demand from the world’s biggest fuel consumer, the U.S., offset demand concerns elsewhere. Both benchmarks settled lower on Tuesday, breaking a three day streak of gains. U.S. oil inventories fell by 15.4 million barrels in the week ended July 28, according to market sources citing American Petroleum Institute figures. Oil inventories have also begun to drop in some other regions as demand outpaces supply, which has been constrained by deep production cuts from Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), that has provided price support. Natural gas prices may trade on upside path in range of 208-220.
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