Bullions counter may remain on firm path as yellow metal prices climbed to a two-week high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.
BULLIONS
•Bullions counter may remain on firm path as yellow metal prices climbed to a two-week high on Thursday as U.S. Federal Reserve Chair Jerome Powell opened the door to cutting interest rates as early as September.
•Overall gold can move in range of 69800- 70200 while silver also can move in range of 83000 -85000.
•Fed Chair Jerome Powell stated that rates could be cut as soon as September if the U.S. economy follows its expected path, putting the central bank near the end of a more than two-year battle against inflation but square in the middle of the nation’s presidential election campaign.
•Elsewhere, Hamas leader Ismail Haniyeh was assassinated in the Iranian capital Tehran early on Wednesday morning, an attack that drew threats of revenge on Israel and fuelled further concerns that the conflict in Gaza was turning into a wider Middle East war. Geopolitics is increasingly more supportive for gold in the medium and long term
BASE METALS
•In base metal counter, Copper prices can trade on upside path as it can move range of 800-820.
•Prices of copper and most other base metals traded higher on Thursday, supported by a softer U.S. dollar and expectations of further stimulus to help revive demand from top consumer China. The dollar index turned soft after the U.S. Federal Reserve opened the door for an interest rate cut in September.
•Investors were also hoping for more support policy from China after a private sector survey showed on Thursday that the country’s manufacturing activity in July shrank for the first time in nine months. The reading came in line with an official PMI survey on Wednesday showing manufacturing activity slipped to a five-month low.
•Aluminium prices are expected to move upside in range of 212-215.
ENERGY
•Crude oil may trade higher as it may move in range of 6520-6620 as oil prices rose in early Asian trading on Thursday, extending strong gains in the previous session after the killing of a Hamas leader in Iran raised the threat of a wider Middle East conflict and on signs of strong oil demand in the U.S.
•Hamas leader Ismail Haniyeh was assassinated in the Iranian capital Tehran on Wednesday, less than 24 hours after Lebanon-based Hezbollah’s most senior military commander was killed in an Israeli strike in the capital, Beirut. The killings fuelled concern that the 10-month-old war in Gaza between Israel and Hamas was turning into a wider Middle East war, which could potentially lead to disruptions in oil supply from the region.
•Robust export demand pushed U.S. crude oil stockpiles lower by 3.4 million barrels in the week ended July 26 to 433 million barrels, data from the U.S. Energy Information Administration (EIA) showed on Wednesday.
•Natural gas can remain on mixed path as it can move in range of 168-180.
Disclosure
Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.
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