Bullions counter may trade volatile path as yellow metal , set for a monthly drop, as progress in the U.S. debt ceiling deal and expectations that the Federal Reserve will likely raise interest rates further eroded bullion’s safe-haven status. Gold can move in range of 59700-60150 while silver also can move in range of 70000-72000.
Bullions counter may trade volatile path as yellow metal , set for a monthly drop, as progress in the U.S. debt ceiling deal and expectations that the Federal Reserve will likely raise interest rates further eroded bullion’s safe-haven status. Gold can move in range of 59700-60150 while silver also can move in range of 70000-72000. Legislation brokered by U.S. President Joe Biden and House Speaker Kevin McCarthy to lift the $31.4 trillion debt ceiling and achieve new federal spending cuts passed an important hurdle, advancing to the full House of Representatives for debate and an expected vote on passage on Wednesday. Fed funds futures traders now see the Fed as more likely to hike interest rates next month than leave them unchanged, as economic data beats expectations and lawmakers appear to have reached a deal to raise the debt ceiling.
In base metal counter, Copper can witness further selling pressure as it can move in range of 700-715. China’s manufacturing activity contracted faster than expected in May on weakening demand, with the official manufacturing purchasing managers’ index (PMI) down to 48.8 from 49.2 in April. The outcome lagged a forecast of 49.4. In south China, due to the large amounts of cargoes under warrants offered for sale and higher SHFE copper prices, sellers sold actively. China spot quotes fell and overall trades were quiet. Zinc may remain on subdued path as it can move in range of 204-210. Aluminum can trade on weaker path as it can move in range of 203-210.
ENERGY: Crude oil may trade on weaker path as it can move in range of 5640-5900. Oil prices extended losses as worries of slowing demand from top oil importer China after the release of weaker-than-expected economic data outweighed some positive progress on the U.S. debt ceiling bill. The debt deadline nearly coincides with the June 4 meeting of OPEC+ – the Organization of the Petroleum Exporting Countries and allies including Russia. Traders were uncertain about whether the group would increase output cuts as a slump in prices weighs on the market. Natural gas prices may witness short covering as it can move in range of 188-197.
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