Bullions counter may trade on upside path as prices drifted higher on Thursday after softer-than-expected U.S. economic data fuelled hopes that the Federal Reserve could cut interest rates as soon as September.
BULLIONS
•Bullions counter may trade on upside path as prices drifted higher on Thursday after softer-than-expected U.S. economic data fuelled hopes that the Federal Reserve could cut interest rates as soon as September.
•Overall gold can move in range of 72300-72700 while silver also can move in range of 90500-92600.
•U.S. economic data on Wednesday, including a weak services and ADP employment reports, showed a slowing economy. A separate report showed an increase in initial applications for U.S. unemployment benefits last week.
•The dollar was on the back foot, making greenback priced-bullion cheaper for other currency holders. Markets are now pricing in a 74% chance of the Fed cutting interest rates at its September meeting, according to the CME FedWatch Tool.
BASE METALS
•In base metal counter, Copper prices can witness some bounce back as it can move range of 855-868.
•Copper prices settled driven by increasing physical demand in China. Inventories of copper in LME-approved warehouses rose to 180,125 tons on June 27 from around 104,000 tons in mid-May.
•The global refined copper market showed a surplus of 13,000 metric tons in April, compared to a 123,000 metric tons surplus in March, according to the ICSG. World refined copper output in April was 2.29 million metric tons, while consumption was 2.28 million metric tons.
ENERGY
•Crude oil may trade on mixed path as it may move in range of 6870-7040. Oil prices fell after U.S. employment and business activity data came in weaker than expected, in signs the economy may be cooling in the world’s top oil consuming nation.
•In the United States, data on Wednesday showed first-time applications for U.S. unemployment benefits increased last week, while the number of people on jobless rolls rose further to a 2-1/2-year high towards the end of June.
•In a further sign of a loss of momentum in the economy, the ISM Non-Manufacturing index, a measure of U.S. services sector activity, fell to a four-year low of 48.8 in June, well below the 52.5 consensus, amid a sharp drop in orders.
•Natural gas can move on sideways path as it can move in range of 200-210.
Disclosure
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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