DAILY MARKET NEWS AND OUTLOOK

BULLIONS

Bullions counter may trade on weaker path as U.S. Treasury yields and the dollar strengthened on expectations that interest rates are likely to remain high. Yellow metal can move in range of 59000-59500 while silver also can move in range of 73000-74200. The U.S. dollar hovered near six-month highs hit on Tuesday, while 10-year bond yields were at over one-week highs as markets weighed cues on interest rates. Federal Reserve Governor Christopher Waller said the latest round of economic data was giving the U.S. central bank space to see if it needs to raise interest rates again. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1% on Tuesday. Higher U.S. interest rates and Treasury bond yields raise the opportunity cost of holding gold, which does not earn any interest.

BASE METALS

In base metal counter, Copper can trade in red as it can move in range of 735-743. Copper inventories in LME-registered warehouses reached 107,425 tons, the highest since October 2022, with significant deliveries in August going to the United States, South Korea, and Taiwan. Although SHFE copper stockpiles increased slightly for two consecutive weeks, global copper demand remains promising due to the electric vehicle market and India’s growing economy. India’s copper demand is expected to rise by 40% to over 1.5 million tons by 2025. While global copper smelting activity remained largely steady in August, China’s strong performance offset weaker readings elsewhere. A recent survey also unexpectedly revealed China’s return to expansion mode in factory activity, with improvements in supply, domestic demand, and employment. Zinc may remain on sideways path as it can move in range of 217-223.  Aluminum can move in range of 198-204.

ENERGY:

Crude oil may continue its bullish momentum as markets worried about a supply shortage after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year. Overall it can move in range of 7100-7350. Investors had expected Saudi Arabia and Russia to extend voluntary cuts into October, but the three-month extension was unexpected. Saudi Arabia will extend its voluntary oil output cut of 1 million barrels per day (bpd) for another three months until the end of December 2023. The Saudi and Russian voluntary cuts are on top of the April cut agreed by several OPEC+ producers, which extends to the end of 2024. Natural gas prices may trade on weaker path as it can move in range of 210-220.

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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