Bullions counter may trade on sideways path as yellow metal were little changed as investors awaited comments from Federal Reserve Chair Jerome Powell and jobs data for further cues about the U.S. interest rate outlook.
BULLIONS
Bullions counter may trade on sideways path as yellow metal were little changed as investors awaited comments from Federal Reserve Chair Jerome Powell and jobs data for further cues about the U.S. interest rate outlook. Overall gold can move in range of 71400-71800 while silver also can move in range of 88400-90500. Traders will look for cues on interest rate cuts when Powell speaks later in the day. Next on their radar are minutes of the U.S. central bank’s last policy meeting due on Wednesday and the nonfarm payrolls report scheduled for release on Friday. Fed Bank of New York President John Williams said he continues to believe price pressures are moderating back to the levels targeted by the central bank, in comments made on Sunday. Data on Monday showed that U.S. manufacturing contracted for a third straight month in June, while a drop in a measure of prices paid by factories for inputs to a six-month low suggested that inflation could continue to subside.
BASE METALS
In base metal counter, Copper prices can witness some bounce back as it can move range of 843-851. PMI reports indicated a weak manufacturing outlook in major economies, further dampened by slowing industrial demand in China. Despite an expected seasonal drawdown, Chinese copper inventories remained high, driven by robust domestic production and increased smelting from scrap. Consequently, Shanghai bonded warehouse deliveries continued to trade at a discount to LME prices for over a month. Shanghai Futures Exchange copper inventories stood at 322,910 tons, significantly higher than the 30,000 tons recorded in January. Meanwhile, LME-approved warehouse stocks surged over 60% since mid-May to 167,825 tons, mainly due to deliveries from China to Asian warehouses. This lack of supply concerns on the LME market has led to a record discount for cash copper against the three-month contract, currently around $135 a ton. Aluminium may trade on sideways path as it can move in range of 229-233.
ENERGY
Crude oil may trade on upside path as it may move in range of 6930-7050. Oil prices were little changed on Tuesday, holding near the two-month highs reached in the previous session, on expectations for rising fuel demand from the summer travel season and possible U.S. interest rate cuts that could boost economic growth. On the supply side, markets were planning for possible disruptions from Hurricane Beryl on U.S. oil refining and offshore production. However, forecasts currently show the storm likely moving into Mexico’s Bay of Campeche and causing problems for oil production there. Along with a Commerce Department report on Friday showing U.S. inflation data was unchanged in May that could strengthen the case for lowering U.S. interest rates, a step that would boost economic activity and oil demand. Some data shows that crude imports to Asia, the world’s biggest oil consuming region, in the first half of 2024, were lower than last year. This was mainly because of lower imports into China, the world’s biggest oil importer and the second-largest consumer. Natural gas can move on weaker path as it can move in range of 200-212.
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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