BULLIONS

Bullions counter may trade on firm path as gold prices climbed more than 1% on Monday as dramatic clashes between Israeli and Hamas forces over the weekend raised the risk of a wider Middle East conflict and spurred a rush to safe haven investments like bullion. Yellow metal can move in range of 57200-57700 while silver also can move in range of 68500-70500. Israel pounded the Palestinian enclave of Gaza on Sunday, killing hundreds of people in retaliation for one of the bloodiest attacks in its history when Islamist group Hamas rampaged through Israeli towns on Saturday. The spiralling violence threatens to start a major new war in the Middle East, sending oil prices higher and boosting the demand for safe-haven assets like Treasuries, the dollar, the Japanese yen along with gold. Data last week showed U.S. employment increased by the most in eight months in September, pointing to persistent labour market strength. A hot inflation print later in the week could pave the way for another U.S. rate hike this year.

BASE METALS

In base metal counter, Copper can move positive path as it can move in range of 705-718. In the short term, Codelco, a major copper producer, reported a 14% drop in output during the first half of the year, exacerbating the 7% decline observed in 2022. However, concerns about China’s economic outlook have created pressure on copper demand, amid fears of financial instability stemming from indebted property developers. Copper prices in 2023 initially showed strength but experienced a mid-year decline due to China’s economic challenges. Nevertheless, they have begun to recover, despite mixed market forecasts. China’s increasing demand for copper is driven by its expanding green economy, solar installations, and manufacturing sector. Aluminum can move in range of 202-208.

ENERGY

Crude oil may trade lower as it can move in range of 7100-7300. Crude oil prices spiked higher in the wake of a massive Hamas attack on Israel, but the relatively modest increase masks the risk of an escalating Middle East conflict. The early price action in the wake of the weekend attacks launched by Hamas militants from their Gaza stronghold against southern Israel is likely a reflection that the violence holds little immediate threat of interrupting global oil supplies. Israeli Prime Minister Benjamin Netanyahu said his nation is now at war, vowing “mighty vengeance”, while Iran’s President Ebrahim Raisi telephoned the Hamas chief to congratulate him for the “victory”. These reactions from two key leaders in the Middle East underscore just how the Hamas attacks are likely to upend relationships in the Middle East. Natural gas prices may move with upside path as it can move in range of 275-290.

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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