BULLIONS

Bullion counter can trade on positive bias on weaker greenback but expectations of more interest rate hikes capped further gains after hawkish comments by U.S. Federal Reserve Chair Jerome Powell. Gold (Oct) can recover towards 50800 while taking resistance near 50400 in domestic markets. Silver (Dec) can recover towards 56000 while taking support near 54000. The Fed is “strongly committed” to fighting inflation and remains hopeful that can be done without the “very high social costs” involved in prior campaigns to control surging prices, Powell said on Thursday. His remarks were echoed by other policymakers.  Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.30% to 968.15 tonnes on Thursday from 971.05 tonnes on Wednesday.

BASE METALS

Base metal counter may witness bounce back as Copper can recover towards 670 while taking resistance near 650. The premium of LME cash copper over the three-month contract jumped to $145 a tonne on Thursday, the highest since last November, showing near-term tightness in LME inventories. Aluminium and copper prices marched higher on worries that stoppages due to high energy prices or other disruptions will spur shortages. Zinc may bounce towards 300 while taking support near 280 in MCX. Aluminum can also recover towards 205 in MCX. European smelters are estimated to have cut an annualised 800,000 to 900,000 tonnes of aluminium production since energy prices began to rise last year.

ENERGY

Crude oil may trade in green as investors considered Russia’s threat to halt oil and gas exports to some buyers as it can move towards 6850 in MCX while taking support near 6600. Recently decline is capped by underlying supply tightness amid Russia’s threat to cut oil flows to any country that backs a price cap on its crude, as well as a small output cut by the Organization of the Petroleum Exporting Countries (OPEC) and allies, and a weaker outlook for U.S. oil production growth. The U.S. Energy Information Administration on Thursday said it expected U.S. crude output to rise by 540,000 barrels per day to 11.79 million bpd in 2022, down from an earlier forecast for a 610,000 bpd increase. Natural gas prices can continue to recover as it can test 660 while taking support near 635 in MCX.

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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