BULLIONS

Bullions counter may trade on firm path as the dollar index eased, even though fears persisted that the U.S. Federal Reserve would keep raising interest rates to curb inflationary pressures. Gold can move in range of 55600-56000 while silver also can move in range of 64000-65000. The number of Americans filing new claims for unemployment benefits fell again last week, pointing to sustained labour market strength and adding to fears that the Fed would keep hiking interest rates for longer. Atlanta Fed President Raphael Bostic said he was ready to keep lifting rates higher if inflation did not slow, and was still mulling how recent, stronger-than-anticipated inflation data might shape the Fed policy. Money markets expect the Fed’s target rate to peak at 5.457% in September.

BASE METALS

In base metal counter, Copper can trade on positive path as it can move in range of 760-771. In terms of fundamentals, import losses were around 1,000 yuan/mt, and smelters were exporting cargoes. As a result, the supply of tradable goods in the spot market in east China is slightly tight, and prices have risen accordingly. Due to the market’s concerns about the tight supply, buying interest has increased. When the copper price fell at the beginning of the week, many downstream buyers replenished their stocks, and the transaction became light as the copper price rebounded. Zinc may trade with sideways path as it can move in range of 268-274. Aluminum can trade weaker path as it can move in range of 208-214. In terms of fundamentals, aluminium smelters in Yunnan have completed their production reduction, while the resumption of aluminium production in Sichuan, Guizhou and other places is relatively slow, thus the pressure on the short-term supply side has eased.

ENERGY: Crude oil may trade on upside path as it can move in range of 6390-6500. Oil prices were on track to post gains of nearly 2% for the week as a rebound in China’s factory activity offset growing concerns about rising U.S. crude stocks and potential rate hikes in Europe. Manufacturing activity in China grew last month at the fastest pace in more than a decade, reinforcing expectations of a fuel demand recovery. Seaborne imports of Russian oil are set to hit a record high this month. Comments by Atlanta Federal Reserve President Raphael Bostic that the Fed should stick with “steady” quarter-point rate eased concerns in the U.S., and helped support oil prices on Thursday even after strong unemployment data. Natural gas prices can continue its recovery as it can move towards 240 while taking support near 220.

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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