BULLIONS
Bullions counter may trade on volatile path as yellow metal prices held steady on Tuesday backed by lower U.S. Treasury yields, after touching a record high in the previous session on growing expectations that the Reserve would cut interest rates for the first time in June. Overall gold (Jun) can move in range of 68300-69000 while silver (May) also can move in range of 75500-76300. U.S. manufacturing grew for the first time in 1-1/2 years in March, as production rebounded sharply and new orders increased, but employment at factories remained subdued and prices for inputs pushed higher. Traders are pricing in a 57% probability that the Fed will begin cutting rates in June, according to the CME Group’s FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.
BASE METALS
In base metal counter, Copper can move on strong path as it can move range of 762-770. Copper prices were supported by improving demand outlook from top consumer China and looming concerns of raw material supplies. Shanghai copper recorded its best daily gain in two weeks on Monday after an official survey showed China’s manufacturing activity expanded for the first time in six months in March. Stronger-than-expected U.S. manufacturing data on Monday pushed Treasury yields higher and led investor worries over the timing of interest rate cuts by the Federal Reserve. Zinc may trade on firm path as it may move in range of 215-220.
ENERGY
Crude oil may remain on firm path as it may move in range of 6950-7050. Oil prices gained in early Asian trading on Tuesday, underpinned by signs of improved demand and escalating Middle East tensions that had sparked a rally in U.S. futures to a five-month high in the previous session. In the Middle East, an Israeli strike on Iran’s embassy in Syria killed seven military advisors, among them three senior commanders, marking an escalation in the conflict that has stretched for nearly half a year and sparking concerns about more tangible impacts on oil supply. The Organization of Petroleum Exporting Countries will hold an online meeting of its Joint Ministerial Monitoring Committee on Wednesday to review the market and members’ implementation of output cuts. Members are expected to uphold their current supply policy calling for voluntary output cuts of 2.2 million barrels per day (bpd) to the end of the second quarter. Natural gas prices may trade on mixed path as it may move in range of 147-157.

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.

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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