RBI Policy will be key event for the day
Global commodity market had a volatile to positive trade yesterday. Where, Bullions, Base Metal and Energy prices close somewhat positive nodes.
Gold saw a volatile to slightly positive session after Fed Chair Jerome Powell reiterated that the central bank may need to raise interest rates further due to strength in the labor market and elevated inflation.
But Powell also acknowledged that “disinflation” had begun, and that patience was required in order to let prices cool. Markets saw this as evidence that some progress was being made against inflation, which weighed on the dollar and saw gold settle higher on Tuesday..
MCX Gold Future settled at 57257, up 0.53%. Comex Gold future up 0.27%settled at $1872.10 at once.
CRUDE OIL witnessed a speculative jump of 3.78% yesterday and settled at 6363 as compared to previous day’s close of 6131. Crude oil hit a day’s high 6383, as the dollar fell after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than markets had expected and as U.S. crude stocks surprisingly fell. Meanwhile, The outage of an oil export terminal after the earthquake in Turkey also supported recent gains.
Brent crude futures rose 1.3.47%, to $84.08 a barrel, while West Texas Intermediate crude (WTI) gained 4.23% to $77.55.
Copper future recovered by 0.71% and settled at 775.75, amid renewed optimism over an economic recovery in China, the world’s largest copper importer.
High-grade copper futures rose slightly to $4.0708 a pound after jumping nearly 1% in the prior session. The red metal also broke a four-day losing streak on Tuesday.
Today, the Economic calendar starts at 5.20am with Japan Current Account data. Data foreseen slightly lower at 1.25T previous 1.92T,which could have a negative impact for Yen.
At 11.am –Reserve Bank of India Rate decision will bring volatility in the domestic market. Expectation 0.25% hike to 6.50%).
At 1.15pm – French Prelim Private Payrolls q/q is due to release. Data foreseen lower at 0.3% from previous quarter 0.6%, which could have a negative impact on Euro and for bullion.
Tentative- U.S President Biden Speaks is due, which will have a volatile impact for the entire market.
At 2.30pm- Italian Retail Sales m/m is due to release. Data foreseen a negative at -0.8% from the previous month reading of 0.8%,which could have a negative impact on Euro and Bullion.
At 7.45pm – FOMC Member Williams Speaks is due which will give clutter for dollar and bullion prices.
At 8.30pm – U.S. Final Wholesale Inventories m/m data to be released. Data foreseen almost unchanged from previous at 0.1%. This might have a neutral impact on the dollar.
At 9: pm – Crude Oil Inventories will have a strong impact on dollar and crude oil prices.