Bullions counter may trade with weaker path as investors braced for the U.S. non-farm payrolls data later today that could influence the Federal Reserve's interest-rate path.
BULLIONS
Bullions counter may trade with weaker path as investors braced for the U.S. non-farm payrolls data later today that could influence the Federal Reserve’s interest-rate path. Gold can move in range of 62550-62800 while silver also can move in range of 71800-73000. Data on Thursday showed that U.S. weekly jobless claims fell more than expected last week and U.S. private employers hired more workers than expected in December, pointing to persistent strength in the labor market. Traders are pricing in about a 65% chance of a rate cut from the Fed in its March policy meeting, according to the CME FedWatch tool. The minutes of the Fed’s last meeting, released on Wednesday, revealed a growing conviction among officials that inflation was under control and a concern that “overly restrictive” monetary policy posed threats to the economy.
BASE METALS
In base metal counter, Copper can move in range of 721-730. Prices of copper rebounded on Friday as the dollar edged lower, but the market’s revised expectation of the scale and timing of the U.S. Federal Reserve’s interest rate cuts capped gains. Market expectations that the Fed will start easing policy as early as March had boosted copper prices, often seen as an economic bellwhether. But minutes from December’s policy meeting showed most policymakers agreed borrowing costs need to remain high for some time, suggesting a March cut is less likely. Also weighing on the market was supply tension amid low stocks in top consumer China, where demand remained firm. Aluminium may trade in range of 203-208.
ENERGY
Crude oil may trade higher as it may move in range of 6000-6150. Oil prices edged higher after minutes from a Federal Reserve meeting suggested inflation was under control and as U.S. Secretary of State Antony Blinken prepared to visit the Middle East to prevent escalation in the Israel-Gaza conflict. While the minutes of the Fed meeting did not provide direct clues about when interest rate cuts might commence, the discussions signalled a growing sense that inflation is under control and rising concern about the risks that an “overly restrictive” monetary policy may hold for the economy. Also adding to supply concerns were developments in the Middle East, where Israeli forces are planning a more targeted approach in the north and further pursuit of Hamas leaders in the south, its defence minister said on Thursday. Natural gas prices may trade on volatile path as it may move in range of 225-236.
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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