BULLIONS

Bullions counter may trade on weaker path as gold prices headed back towards seven-month lows on as an ascending dollar and bond yields after strong U.S. jobs data kept markets expectant of further monetary policy tightening. Yellow metal can move in range of 56600-57000 while silver also can move in range of 66500-67500. The unexpected rise in August U.S. job openings highlights the durability of labour demand, NAB Resources said, adding that gold continues to decline on the higher-for-longer Federal Reserve rates outlook, strengthening U.S. bond yields and dollar. U.S. Treasury Secretary Janet Yellen said on Tuesday she was very optimistic about the outlook for the economy, adding that inflation was coming down in the short term and the labor market was “extremely strong.” Fed officials see rising yields on long-term U.S. Treasury debt as evidence their tight-money policies are working, but for now at least say they are not triggering alarm bells for the economy.

BASE METALS

In base metal counter, Copper can move on weaker path as it can move in range of 697-706. Data from the COMEX revealed that money managers held a net short position of 21,220 copper contracts on September 26, the largest since May 30, with short positions hitting 77,276 contracts, the highest since March 2020. The International Copper Study Group (ICSG) reported a deficit of 19,000 metric tons in the global refined copper market in July, compared to a 72,000 metric tons deficit in June. However, for the first seven months of the year, the market recorded a surplus of 215,000 metric tons, in contrast to a 254,000 metric tons deficit during the same period the previous year. Aluminum can move in range of 205-209.

ENERGY

Crude oil may trade lower as it can move in range of 7350-7470. Oil edged lower on Wednesday ahead of a panel meeting of OPEC+ ministers, as the market weighed expectations of supply tightness against fears that high interest rates could reduce fuel demand. Along with fears that interest rates will stay high for some time, oil benchmarks also have been pressured by concerns that the strengthening dollar would dent demand, as it makes oil more expensive for holders of other currencies. The Organization of the Petroleum Exporting Countries and allies, or OPEC+, is expected to keep output policy unchanged when it meets on Wednesday, after members Saudi Arabia and Russia extended output cuts to the end of the year. Investors are also closely watching supply and demand in the United States. Industry data showed crude stocks fell by about 4.2 million barrels in the week ended Sept. 29, according to market sources citing American Petroleum Institute figures on Tuesday. Natural gas prices may move with upside path as it can move in range of 240-250.

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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