BULLIONS
Bullions counter may trade on negative path as investors awaiting key U.S. inflation data and the outcome of the Federal Reserve’s policy meeting for details of the central bank’s plans to cut interest rates against its inflation target. Overall gold can move in range of 71000-71400 while silver also can move in range of 87500-89500. The May consumer price index (CPI) inflation report due on Wednesday will be the next major data point along with the Fed concluding their two-day meeting on the same day. Updated economic projections from Fed officials this week are expected to show fewer interest rate cuts than policymakers anticipated three months ago amid unexpectedly sturdy inflation. The strong U.S. jobs data and reports that China’s central bank was holding off gold purchases sent bullion tumbling about 3.5% or $83 on Friday, in its biggest daily drop since November 2020. China, the biggest official sector buyer of gold, is expected to resume its bullion shopping spree once prices ease from the record highs hit in May.
BASE METALS
In base metal counter, Copper prices can trade on mixed path as it can move range of 845-865. Copper production from Chile’s state-run miner Codelco, the world’s largest producer of the metal, dropped 6.1% in April compared to the same month last year to total 95,100 metric tons, data from copper commission Cochilco showed on Friday. Copper output fell more sharply at the BHP-controlled Escondida mine, with production during the month shrinking 6.8% to settle at 98,000 tons. At the Collahuasi mine, which is jointly run by miners Glencore and Anglo American, the data showed copper production inched up 1.9% to a reach 42,300 tons. Overall, the country’s copper output slipped 1.7% from a year earlier to total 405,600 tons, according to Cochilco. Aluminium may trade in red as it can move in range of 231-239.

ENERGY
Crude oil may extend gains as it may move in range of 6400-6560. Oil prices rose on Tuesday, extending the previous day’s rally on hopes of higher seasonal fuel demand and potential U.S. crude purchases for its petroleum reserve, though gains were capped by a firmer dollar. Prices climbed about 3% to a one-week high on Monday, buoyed by expectations of rising fuel demand this summer despite the dollar’s climb on expectations the U.S. Federal Reserve will leave interest rates higher for longer. Investor attention is on the release of U.S. consumer price index data for May and the conclusion of the Fed’s two-day policy meeting on Wednesday for hints on when the Fed may start reducing interest rates. The market is also watching for reports from the American Petroleum Institute industry group, due later on Tuesday, and the Energy Information Administration, the statistical arm of the U.S. Department of Energy, due on Wednesday. Natural gas can open in green as it can move in range of 245-258.

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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