Bullions counter may witness mixed movement as US Personal Consumption Expenditures (PCE) and monthly employment numbers will provide further direction to the prices.
Bullions counter may remain on firm note as the dollar and Treasury yields retreated from recent highs ahead of crucial U.S. inflation and jobs data this week that could define the outlook for interest rates. The yellow metal can move in range of 58700-59200 while silver also can move in range of 73000-74500. Among a string of economic data scheduled to be released this week, focus would be on the Federal Reserve’s preferred inflation measure, the U.S. PCE price index due on Thursday, and the non-farm payrolls report due on Friday. Record levels of government debt, geopolitical tensions that threaten to split the global trading system, and the likely persistence of weak productivity gains may saddle the world with a slow-growth future that stunts development in some countries even before it starts. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 886.64 metric tons on Monday.
In base metal counter, Copper can witness some bounce back as it can move in range of 728-740. Due to the inflows of imported copper and the weakening consumption due to rising copper prices, inventories in east China have increased. In south China, due to the lack of imported copper and domestic copper replenishment, the inventory has dropped for seven consecutive days. High copper prices put pressure on demand. In terms of prices, the U.S. economic data in the past week will have a strong guidance on copper prices, and it is expected that copper prices still have room to rise. Zinc may remain on sideways path as it can move in range of 214-218. Aluminum can move in range of 196-202.
Crude oil can show sideways movement as it may move in range of 6550-6670. Oil prices traded flat on Tuesday as worries that further possible U.S. interest rate hikes could pull down demand were countered by concerns a tropical storm off the U.S. Gulf Coast may impact supply. Investors await key U.S. economic data later this week that will help determine the path of interest rates this year and next. Federal Reserve Chair Jerome Powell on Friday said the U.S. central bank may need to raise rates further to cool stubborn inflation. While prices since the start of the third quarter are up about 12% and 13% for Brent and WTI, respectively, following production cuts from OPEC+, the outlook for China’s economy continues to remain a concern. This week the focus will be on the U.S. personal consumption expenditures price index report that is due on Thursday and the August nonfarm payrolls data on Friday. Natural gas prices may trade lower as it can move in range of 215-235.
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