BULLIONS

Bullions counter may trade with positive path as yellow metal edged higher on Tuesday, supported by the prospect of interest rate cuts in 2024 from the Federal Reserve, while investors look forward to a slew of economic data this week for more clarity on the U.S. rate outlook Gold can move in range of 63100-63500 while silver also can move in range of 74000-75500. Focus this week will be on minutes from the last Fed meeting due on Thursday for more cues on rate cuts this year. Data on U.S. job openings and December non-farm payrolls will also been keenly watched this week. At its December policy meeting, the Fed adopted an unexpectedly dovish tone and forecast 75 basis points in rate reductions for 2024. Markets are now pricing in an 86% chance of rate cuts from the U.S. central bank in March, according to CME FedWatch tool.

BASE METALS

In base metal counter, Copper can move in range of 728-735. Top copper smelters in China adjusted their first-quarter guidance for copper concentrate processing treatment and refining charges lower, reflecting a tightening supply outlook due to mine closures and disruptions. The rates, set at a meeting of the China Smelters Purchase Team, were $80 per metric ton and 8 cents per pound, marking a 16% decrease from the fourth-quarter guidance of $95 per ton and 9.5 cents per pound, a six-year high. The global refined copper market showed a deficit of 53,000 metric tons in October, a slight improvement from the 56,000 metric tons deficit in September, according to the International Copper Study Group. October’s refined copper output was 2.34 million metric tons, while consumption reached 2.39 million metric tons. Aluminium may trade in range of 208-214.

ENERGY

Crude oil may witness some lower level buying as may move in range of 6000-6150. Oil prices jumped 1% on Tuesday, starting the New Year higher as a Red Sea naval clash focused attention on potential Middle East supply disruptions and expectations of Chinese economic stimulus boosted the demand outlook in the world’s top crude importer. The risks of the Israel-Gaza conflict morphing into a wider regional conflict rose over the weekend after U.S. helicopters repelled an attack on Sunday by Iran-backed Houthi militants on a Maersk container vessel in the Red Sea, sinking three Houthi ships and killing 10 militants, according to accounts by American, Maersk, and Houthi officials. Iran also supports Hamas, the ruling faction in Gaza fighting Israel, and other groups Tehran back across the Middle East have launched attacks on U.S. forces in the region and Israel. Natural gas prices may witness lower level buying as it may move in range of 206-216.

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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