BULLIONS

Bullions counter may trade on weaker path as yellow metal were track for a second consecutive week of declines, weighed by a stronger U.S. dollar and Treasury yields after hawkish remarks from Federal Reserve Chair Jerome Powell. Gold can move in range of 59800-60300 while silver also can move in range of 70500-71500. Denting market expectations of a peak in U.S. rates, Fed officials including Powell said on Thursday they are still not sure that interest rates are high enough to finish the battle with inflation. Traders pushed out bets on the Fed’s likely first interest-rate cut to June of next year from May earlier. Higher rates raise the opportunity cost of holding gold, which yields no interest. Meanwhile, the dollar index was heading for its best week in two months, making gold more expensive for other currency holders. Data on Thursday showed the number of Americans filing new claims for unemployment benefits edged down last week.

BASE METALS

In base metal counter, Copper can move on weaker path as it can move in range of 698-708. On the macro front, the continued jobless claims in the United States rose for the seventh consecutive week to 1.83 million, the highest level since mid-April, further proving that the labor market is cooling. But Powell was hawkish in his speech, saying the Fed would not hesitate to further tighten monetary policy if appropriate. After Powell’s speech, traders in U.S. short-term interest rate futures postponed expectations for the Fed’s first interest rate cut from May to June next year. Aluminum can move in range of 205-208.

ENERGY

Crude oil may trade on mixed path as it may move in range of 6250-6450. Oil prices were little changed on Friday after rising in the previous session but are set to fall for a third week as concerns of supply disruptions from the Israel-Hamas conflict have ebbed allowing demand worries to reassert themselves. The White House said on Thursday that Israel had agreed to pause military operations in parts of north Gaza for four hours a day, though there was no sign of a complete let-up. The sense supply disruptions from the Israel-Hamas conflict are easing is occurring as concerns around demand, especially from China, the world’s largest oil importer, are rising. Weak Chinese economic data this week increased worries of faltering demand. Additionally, refiners in China, the largest buyer of crude oil from the world’s largest exporter Saudi Arabia, asked for less supply from Saudi Arabia for December. Natural gas prices may tad further lower as it can move in range of 240-268.

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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