Bullions counter may trade with mixed path as they witnessed their third straight month of gains, as the dollar weakened, while market participants awaited the U.S. Federal Reserve policy decision later this week amid hopes of a less-aggressive rate hike. Gold can move in range of 56800-57200 while Silver also can move in range of 68000-69000.
Bullions counter may trade with mixed path as they witnessed their third straight month of gains, as the dollar weakened, while market participants awaited the U.S. Federal Reserve policy decision later this week amid hopes of a less-aggressive rate hike. Gold can move in range of 56800-57200 while Silver also can move in range of 68000-69000. Traders mostly expect the Fed to scale back rate hikes to 25 basis points (bps) at its two-day policy meeting that ends on Wednesday. The U.S. central bank slowed its tightening pace to 50 bps in December after four straight 75-bp hikes. Top gold consumer China’s economic activity swung back to growth in January, official data showed, after a wave of COVID-19 infections passed through the country faster than expected following the dismantling of its pandemic controls.
In base metal counter, Copper can trade on upside path as it can move in range of 773-785. According to the data released by the General Administration of Customs of China, China imported 347,400 mt of copper cathode in December 2022, down 3.06% on the month and 13.13% on the year. The month-on-month decline was attributed to the enduring closure of import window, which caused the imports to be dominated by the delivery of long-term orders. Zinc may trade with sideways path as it can move in range of 293-302. Aluminum can remain in range of 220-225.
ENERGY: Crude oil may trade on negative path as it can test 6250 while facing resistance near 6450. Oil fell by more than 2% in the previous session on the threat of further interest rate hikes and continued Russian crude flows. Investors expect the U.S. Federal Reserve will hike interest rates by 25 basis points on Wednesday, with a half-point increase by the Bank of England and European Central Bank the following day. Higher rates could slow the global economy and weaken oil demand. The market also turned its attention to a planned virtual meeting on Feb. 1 at 1100 GMT of the ministers of the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia, a group known as OPEC+. OPEC+ agreed in October to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023. Natural gas prices can remain on weaker path as it can move range of 210-235.
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