BULLIONS

Bullions counter may trade on firm path as yellow metal firmed on Tuesday after a pullback in the U.S. dollar and Treasury yields, while traders positioned for remarks from several Federal Reserve officials this week to gauge the likely pace of interest rate cuts this year. Overall gold can move in range of 62300-62600 while silver also can move in range of 69800-71000. Fed speakers are expected to reiterate that while March might be too early for a rate cut, they just need more of the same on the inflation front in order to start their cutting cycle. Gold bulls have been slammed by stronger-than-expected U.S. economic data, and have been forced to revisit lower levels as markets continue to lower their bets for a Fed rate cut in March.

BASE METALS

In base metal counter, Copper can move lower in range of 712-720. Production at mines owned by Chile’s cash-strapped copper miner Codelco fell to 1.325 million metric tons in 2023, the company’s chief executive told Reuters on Tuesday, promising a slight recovery in the coming year. Codelco’s production has fallen to its lowest level in a quarter of a century due to operational problems and project hold-ups. Earlier on Tuesday, the Chuquicamata mine’s head said the company expects the site to reach processing capacity of 140,000 metric tons a day by 2030 from its current capacity of 80,000 tons. Aluminium may trade on downside path in range of 197-204.

ENERGY

Crude oil may trade on upside path as oil prices ticked higher, as growth in U.S. oil production is expected to remain largely steady through 2025, easing worries of excess supply. Overall it may move in range of 6000-6200. U.S. domestic production will not exceed the December 2023 record of more than 13.3 million barrels per day until February 2025, the U.S. Energy Information Administration (EIA) said on Tuesday in its short term energy outlook. The EIA also cut its forecast for domestic oil output growth in 2024 by 120,000 barrels per day (bpd) to 170,000 bpd, sharply lower than last year’s output increase of 1.02 million bpd. U.S. government data on oil inventory will be released later on Wednesday. U.S. crude stocks are expected to have risen 1.9 million barrels in the last week as production recovered from a cold freeze and refiners started maintenance. Natural gas prices may remain on volatile path as it may move in range of 165-180.

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.

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