BULLIONS

Bullions counter may trade on sideways path as gold got some support as the dollar pulled back, although fears of more U.S. interest rate hikes on the back of stubbornly high inflation kept a lid on prices. Gold can move in range of 55400-55800 while silver also can move in range of 64100-65500. The yellow metal marked its worst month since June 2021 in February after a string of U.S. data pointed to a resilient economy and a tight labour market, stoking fears that the U.S. Federal Reserve would deliver more interest rate hikes to curb inflation. Money markets expect the U.S. central bank’s target rate to peak at 5.420% in September, from a current range of 4.50% to 4.75%. Meanwhile, official data on Wednesday showed top bullion consumer China’s manufacturing activity had expanded as the fastest pace in more than a decade in February, smashing expectations as production zoomed after the lifting of COVID-19 restrictions late last year.

BASE METALS

In base metal counter, Copper can trade on upside path as it can move in range of 760-780 Fundamentally, domestic smelters in China and traders currently hold sufficient stocks, and the inventory in Guangdong already exceeded 70,000 mt and is still climbing. In terms of consumption, the downstream buyers increased their purchases on falling copper prices, but the end demand had not picked up yet. Zinc may trade with sideways to upside path as it can move in range of 265-275. Aluminum can trade mixed path as it can move in range of 206-212. In terms of fundamentals, the resumption of aluminium production in Sichuan, Guizhou and other places is relatively slow, and there are few supply-side disturbances in the short term.

 ENERGY: Crude oil may trade on upside path as it can move in range of 6320-6450. Oil prices rose for a second day as reports of expanding manufacturing activity in China, the world’s biggest crude importer, boosted the outlook for global fuel demand. Oil prices continue to be supported by expectations for a strong rebound in demand in China, the world’s second-largest crude consumer. Those expectations were further supported by data showing China’s factory activity rose for the first time in seven months in February. U.S. oil inventories rose by 6.2 million barrels in the week ended Feb. 24, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Natural gas prices can continue its recovery as it can move towards 240 while taking support near 215.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

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