Bullions counter can trade in range as Gold prices were headed for a second straight yearly loss as aggressive rate hikes by the U.S. Federal Reserve dented the non-yielding bullion’s appeal. Gold can move in range of 54700-55100 while Silver also can move in range of 69000-70000.
Bullions counter can trade in range as Gold prices were headed for a second straight yearly loss as aggressive rate hikes by the U.S. Federal Reserve dented the non-yielding bullion’s appeal. Gold can move in range of 54700-55100 while Silver also can move in range of 69000-70000. However, gold prices rose nearly $200 from a more than two-year low hit in September and were on course for their best quarter since June 2020, on hopes that the U.S. central bank might slow its pace of rate hikes. The Fed raised interest rates by 50 basis points (bps) in December after four consecutive increases of 75 bps each. Higher rates increase the opportunity cost of holding gold as it pays no interest.
In base metal counter, Copper can trade lower in range of 715-725. On the macro front, the US Department of Labor said on Thursday that the number of initial jobless claims increased by 9,000 last week, and the number of continuing jobless claims rose to 1.71 million two weeks ago. The dollar traded lower as markets digested the data amid recession fears. At the end of the year, the demand from traders and downstream sectors is declining, and the companies’ needs for fund withdrawal are high. Zinc may move on mixed path as it can move in range of 265-274. Aluminum can in narrow range of 206-214. On the supply side, power rationing in Guizhou tends to escalate. The increase in domestic aluminium production may be lower than expected in December. On the demand side, the domestic downstream processing sectors are in the off-season, and new orders are insufficient, dragging down the operating rates this week.
ENERGY: Crude oil may trade on positive path as it can test 6650 while taking support near 6450 in MCX. Oil prices fell due to uncertain demand outlook as more countries considered restrictions on Chinese travelers with COVID-19 infections spreading in the top oil-importing nation. U.S. crude oil inventories rose unexpectedly last week as imports climbed and exports fell, the Energy Information Administration (EIA) said on Thursday. Meanwhile, TC Energy Corp said the 622,000-barrel-per-day Keystone pipeline was now operational, weeks after a major oil spill in rural Kansas. Shutdown of the line hit supplies in the U.S. and briefly lifted oil prices, although there was little change to either benchmark after settlement. Natural gas prices can witness some short covering after recent steep fall as it can test 410 while taking support near 360.
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