BULLIONS

Bullions counter may trade on firm path as yellow metal prices continued to rise a day after posting sharp gains on increased market uncertainty due to conflict in the Middle East, as dovish remarks from top U.S. Federal Reserve officials weighed on the dollar and bond yields. Yellow metal can move in range of 57600-57800 while silver also can move in range of 68500-70500. Gold rose about 1.6% on Monday, its biggest one-day jump in five months, as military clashes between Israel and Palestinian Islamist group Hamas boosted demand for safe-haven assets and oil. Benchmark 10-year Treasury yields retreated sharply from their 2007 highs and the dollar index eased as top Fed officials indicated on Monday that rising yields on long-term bonds could steer the Fed from further increases in its short-term policy rate. The remarks by Fed Vice Chair Philip Jefferson and Dallas Fed president Lorie Logan prompted investors to undercut the likelihood of further Fed rate increases.

BASE METALS

In base metal counter, Copper can move positive path as it can move in range of 704-714. In the shorter term, Chile’s Codelco, the world’s largest copper miner, reported a 14% decline in output in the first half of the year, extending a 7% drop from 2022. Codelco is offering copper at a $234 per metric ton premium to European customers for the coming year, unchanged from 2023. Japan’s refined copper production is expected to remain steady in the second half of fiscal 2024. According to the International Copper Study Group (ICSG), the global copper market is anticipated to witness a deficit of 27,000 metric tons this year and a surplus of 467,000 tons in 2024. Aluminum can move in range of 202-208.

ENERGY

Crude oil may trade on upside path as it can move in range of 7100-7250. Oil prices surged 4% on Monday, recouping some of last week’s steep losses, as military clashes between Israel and the Palestinian Islamist group Hamas ignited fears that a wider conflict could hit oil supply from the Middle East. On Saturday, Hamas launched the largest military assault on Israel in decades. Israel retaliated with a wave of air strikes on Gaza. The eruption of violence threatens to derail U.S. efforts to broker a rapprochement between Saudi Arabia and Israel, in which the kingdom would normalize ties with Israel in return for a defense deal between Washington and Riyadh. Riyadh and Moscow have agreed to a combined 1.3 million barrel per day (bpd) voluntary cut until the end of 2023. New disruptions would exacerbate an expected supply tightness for the rest of the year. Natural gas prices may witness some profit booking at higher levels as it can move in range of 270-290.

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.

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