BULLIONS

Bullions counter may trade on upside path as yellow metal edged up buoyed by a weaker U.S. dollar and Treasury yields after the Federal Reserve held interest rates steady and as investors stepped up bets that the central bank may be done with rate hikes. Gold can move in range of 60500-61300 while silver also can move in range of 70500-71500. The Fed on Wednesday held interest rates steady as widely expected, as policymakers struggled to determine whether financial conditions may be sufficiently tight to control inflation. Fed Chair Jerome Powell said that market borrowing costs would need to be sustainably higher for that to bear on future monetary policy choices. Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.24% to 861.51 tonnes on Wednesday.

BASE METALS

In base metal counter, Copper can move on firm path as it can move in range of 705-714. Copper prices have dropped approximately 15% since reaching a seven-month high in January. This decline is attributed to China’s weak economic growth, global recession fears, and high-interest rates. Additionally, there’s a projected surplus of copper for this year, estimated at 112,000 metric tons, with an expected increase to 302,500 tons in 2024. Notably, stockpiles at the Shanghai Futures Exchange and the London Metal Exchange plummeted by nearly 40% in the week ending October 27th, erasing earlier gains. The Caixin/S&P Global manufacturing PMI fell to 49.5 in October, indicating the first contraction since July and missing forecasts. Copper prices are expected to recover modestly next year, driven by growing demand for the energy transition despite global economic challenges. Aluminum can move in range of 204-207.

ENERGY

Crude oil may trade on mixed path as it may move in range of 6720-6850. Oil gained more than 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the U.S. Federal Reserve kept benchmark interest rates on hold. Oil’s rally comes along with gains across financial assets after the Fed maintained its benchmark interest rate unchanged at 5.25%-5.50% at its latest meeting on Wednesday. Investors are also watching for development in the Middle East which has kept investors on edge about whether it could disrupt oil supplies around the region. Iran’s Supreme Leader Ayatollah Ali Khamenei called on Muslim states to cease oil and food exports to Israel, demanding an end to its bombardment of the Gaza Strip, state media reported. Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced around 2.5 million barrels per day of crude in 2022, according to U.S. energy data. Natural gas prices may trade on volatile path as it can move in range of 285-305.

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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