BULLIONS
Bullions counter may trade on negative path as yellow metal accelerated declines after a stronger-than-expected U.S. jobs report doused expectations for U.S. interest rate cuts this year, adding to bearish sentiment driven by data showing top consumer China held off on bullion purchases in May. Overall gold can move in range of 70800-71230 while silver also can move in range of 88500-91500. The Labor Department’s report showed Nonfarm Payrolls (NFP) rose by 272,000 jobs in May, against expectations of an increase of 185,000. Traders lowered their bets to price in 37 basis points (bps) of cuts by end-December, from 48 bps before the NFP data, with the first cut more likely seen coming in November instead of September. The jobs report also added to the bearish sentiment seemingly driven by data showing top consumer China held off gold purchases in May after 18 consecutive months of buying.
BASE METALS
In base metal counter, Copper prices can trade on subdued path as it can move range of 840-865. China’s unwrought copper imports in May rose 15.8% from a year earlier, customs data showed on Friday, beating market expectations despite weak physical consumption. Imports of unwrought copper and products in China, the world’s biggest consumer of the metal, were 514,000 metric tons last month, compared with 444,010 tons a year earlier, data from the General Administration of Customs showed. Imports were up 17.4% from the previous month. In the first five months, China imported 2.33 million tons of unwrought copper and products, up 8.8% from the same period in 2023. Imports of copper concentrate were 2.26 million tons for May, down 11.7% from a year earlier, customs data showed. Aluminium may trade in red as it can move in range of 231-239.

ENERGY
Crude oil may further rally as it may move in range of 6260-6400. Oil prices nudged lower for a second straight session on Monday, weighed down by a firmer dollar as expectations of interest rate cuts were pushed out further following strong U.S. jobs data on Friday. On Friday, data showed the U.S. added more jobs than expected last month, leading investors to trim expectations for rate cuts and causing the dollar to rally. A stronger greenback makes dollar-denominated commodities such as oil more expensive for holders of other currencies. The markets are focused on the U.S. Federal Reserve and Bank of Japan meetings this week, with the risks of more hawkish outcomes. Brent and WTI posted their third straight weekly loss last week on concerns that a plan to unwind production cuts by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, from October will add to rising global supply. Natural gas can open in green as it can move in range of 243-257.

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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