Bullions counter may trade in narrow range as US CPI data tomorrow will give further direction to the prices. Gold can move in range of 59100-59500 while silver also can move in range of 70000-71200. Gold prices bounced back marginally from one-month lows as bond yields and dollar weakened a day ahead of the release of U.S. consumer price data that could build the case for or against further interest rates hikes.
BULLIONS
Bullions counter may trade in narrow range as US CPI data tomorrow will give further direction to the prices. Gold can move in range of 59100-59500 while silver also can move in range of 70000-71200. Gold prices bounced back marginally from one-month lows as bond yields and dollar weakened a day ahead of the release of U.S. consumer price data that could build the case for or against further interest rates hikes. U.S. and European bank stocks dropped on Tuesday on renewed investor worries about the health of the industry after ratings agency Moody’s downgraded several U.S. lenders and Italy approved a surprise 40% windfall tax on its lenders. The U.S. trade deficit narrowed sharply in June as businesses cut back on purchases of foreign-made capital goods, resulting in imports falling to the lowest level in more than 1-1/2 years.
BASE METALS
In base metal counter, Copper can trade on weaker path as it can move in range of 732-742. On the macro front, the market is nervous about the outlook for global economic growth, which may be much weaker than expected, driving capital inflows into the U.S. dollar, and the U.S. dollar index rose. In addition, Philadelphia Fed Chairman believes that the U.S. economy is on a steady decline track, and the Fed may have reached a stage where it can keep interest rates stable, and it is more likely that the economy will achieve a soft landing. In terms of consumption, demand is expected to be weak in the near future. Copper prices are expected to be under pressure. Zinc may remain on sideways path as it can move in range of 218-224. Aluminum can move in range of 199-204.
ENERGY: Crude oil may trade on upside path as it may move in range of 6750-6850. Crude oil traded firm path on fears over tighter supply arising from output cuts by Saudi Arabia and Russia. Chinese inflation data on Wednesday showed the consumer price index fell in July in its first year-on-year decline since February 2021, confirming the economy’s swing into deflation as its recovery from the pandemic continued to stall. Meanwhile, a monthly report from the U.S. Energy Information Administration (EIA) on Tuesday projected U.S. crude oil production to rise by 850,000 barrels per day (bpd) to a record 12.76 million bpd in 2023, overtaking the last peak of 12.3 million bpd in 2019. Natural gas prices may move further higher as it may move in range of 225-240.
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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