IGI Logo

Gold

• Gold prices fell on Thursday as the dollar advanced after the US Federal Reserve raised interest rates by 50 bps and warned that further rate hikes are still needed to control stubborn inflation

• Additionally, ECB and BoE also raised their key interest rates by 50 bps and indicated more hikes were likely

• However, further downside was prevented as retail sales in the US declined 0.6% MoM in November 2022, the biggest drop so far this year

• Gold prices are expected to trade with a negative bias for the day amid a strong dollar. Further, expectations of higher interest rates for a longer period by the US Fed will hurt the yellow metal. MCX gold prices are likely to break the key support level of 54,000 to continue their downward trend towards the level of 53,800 in the coming trading session

• MCX silver prices are expected to take cues from the gold prices and continue their downward trend towards 67,000

Copper

• Copper and aluminium prices tumbled yesterday amid an uptick in US dollar index and weaker-than-expected factory data from the US and China

• Further, the US Federal Reserve warning on further increases to interest rates fanned fears of weak demand

• Copper prices are expected to trade with a negative bias for the day amid a strong US dollar and risk aversion in global markets. Market sentiments were hurt as major central banks across the globe signalled that interest rates will go higher despite of recessionary fears. Higher interest rates stifle economic activity. Additionally, investors will remain cautious ahead of manufacturing and services PMI data across major countries to gauge the economic health. MCX copper prices are likely to drop further till 697 level

Natural Gas

• Natural gas prices edged up on Thursday after EIA data showed US natural gas inventories dropped by 50 bcf from 3462 bcf to 3412 bcf last week

• WTI Crude oil prices slid about 1% as traders worried about the fuel demand outlook due to a stronger dollar and further interest rate hikes by major central banks

• Additionally, Canada TC Energy Corp said it was resuming operations in a section of its Keystone pipeline, a week after a leak of more than 14,000 barrels of oil in Kansas triggered a shutdown

• Oil prices are likely to trade with a negative bias for the day amid strong dollar and risk aversion in global markets. Further, oil prices may slip as US Fed and ECB hiked interest rates and signalled borrowing cost were far from peaking and partial reopening of a key Canada-US pipeline. MCX Crude oil is expected to drop below 6350 level to continue trading in downward trend towards 6270 level

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer