COMMODITY DAILY MARKET NEWS AND OUTLOOK
BULLIONS
Bullions counter may trade on positive path as yellow metal firmed as the dollar and Treasury yields retreated on rising bets that U.S interest rate cuts may start as early as September, while investors awaited the U.S. non-farm payrolls data. Overall gold can move in range of 72700-73200 while silver also can move in range of 90500-92500. The Federal Reserve will cut its key interest rate in September and once more this year, according to a majority of forecasters in a Reuters poll that also showed a significant risk they opt for only one or none at all. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. The fundamental outlook still looks constructive for gold as we move closer towards possible Fed rate cuts in the second half of the year.
BASE METALS
In base metal counter, Copper prices can open in green as it can move range of 870-885. Copper prices rebounded to trade above a key threshold of $10,000 per metric ton, buoyed by a softer U.S. dollar and signs of better demand from top consumer China. The dollar eased on renewed bets of a U.S. Federal Reserve easing cycle expected this year, while the euro firmed a touch ahead of a policy decision from the European Central Bank (ECB) where traders consider a rate cut all but certain. China’s services activity in May accelerated at the quickest pace in 10 months, boosting sentiment further after factory activity grew the fastest in about two years last month. Aluminium may trade on firm path as it can move in range of 235-245.
ENERGY
Crude oil may witness lower level buying as it may move in range of 6130-6300. Oil rose in early Asian trading on Thursday on rising expectations the Federal Reserve will cut interest rates in September, and as the market rebounded from a selloff related to growing U.S. inventories and an OPEC+ plan to increase supply. Oil prices had fallen after the Organization of the Petroleum Exporting Countries and allies agreed on Sunday to extend most of their oil output cuts into 2025 but left room for voluntary cuts from eight members to be unwound gradually, beginning in October. In the Middle East, Hamas leader Ismail Haniyeh said on Wednesday the militant group would demand a permanent end to the war in Gaza and Israel’s withdrawal as part of a ceasefire plan in what appeared to be a rebuttal to a peace proposal put forward by President Joe Biden, while Israel announced a new military campaign against Hamas. Natural gas can open in green as it can move in range of 220-235.

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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