BULLIONS

Bullions counter may remain on volatile path as tomorrow US nonfarm payroll data to give further direction to the prices. Gold (Feb) can move in range of 62200-62500 while Silver (Mar) also can move in range of 74000-75000. The dovish tone from Fed Chair Jerome Powell, coupled with soft data in the U.S. manufacturing sector, increased the likelihood of an interest rate cut in March 2024. Powell acknowledged the expected slowing effect of monetary policy on the economy, emphasizing appropriate tightening levels but leaving room for further adjustments if needed. The impact of U.S. policy tightening was evident in the persistently soft manufacturing PMI, maintained at 46.7 in November for the 13th consecutive month below the growth threshold of 50.

BASE METALS

In base metal counter, Copper can move on lower path as it can move in range of 705-715. Chilean state-run copper miner Codelco reported a 5.7% year-on-year decline in production in October to 128,000 metric tons. The global refined copper market showed a 55,000 metric tons deficit in September, compared to a 21,000 metric tons deficit in August, according to the International Copper Study Group (ICSG). China’s central bank’s move to extend its trend of setting daily guidance fixes is seen as an attempt to stabilize the yuan after Moody’s outlook downgrade. On the supply side, the decision by Panama to shut down First Quantum Minerals Ltd.’s Cobre operation, following a court ruling on the constitutionality of the mine’s operating contract, is expected to reduce copper supply and challenge the global surplus projected for 2024, as the mine contributes about 1.5% to the world’s copper supply. Aluminum can move lower in range of 194-198. Zinc can move downside in range of 216-220.

ENERGY

Crude oil may trade on negative path as it may move in range of 5750-5950. Oil prices reclaimed some ground after tumbling to a six-month-low in the previous session, but investors remained concerned about sluggish demand and economic slowdowns in the U.S. and China. Oil prices have fallen by about 10% since the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, announced a combined 2.2 million barrels per day voluntary output cuts. Meanwhile, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman met to discuss further oil price cooperation on Wednesday as members of OPEC+, which may strengthen the market’s confidence in the impact of output cuts. Kuwait and Algeria also reaffirmed their support and commitment to the voluntary cuts. Natural gas prices may slip lower 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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