- Bullions counter may trade on mixed path as gold steadied near a record high on Thursday, as softer-than-expected U.S. producer prices data reinforced expectations of a Federal Reserve interest rate cut next week, while investors awaited U.S. consumer inflation data due later in the day.
Commodity Morning Trading Guide
Report Overview
BULLIONS
- Bullions counter may trade on mixed path as gold steadied near a record high on Thursday, as softer-than-expected U.S. producer prices data reinforced expectations of a Federal Reserve interest rate cut next week, while investors awaited U.S. consumer inflation data due later in the day.
- Overall Gold (Oct) can move in range of 108000-109300 while Silver (Dec) also can move in range of 124000-126000.
- Weak U.S. macro data has been fueling gold’s recent climb; both the massive revisions to the labor data as well as the positive surprise in the PPI readings are leading to expectations that the Fed will lower rates at a much faster clip than previously expected.
- The Fed is widely anticipated to cut interest rates by 25 basis points at its meeting next Wednesday, while investors also priced in a slim possibility of 50-basis-point reduction, as per CME Fed Watch tool.
BASE METALS
- In base metal counter, Copper prices can trade on mixed path as it can move in range of 896-905. Copper prices on the LME slipped in early Asian trade, weighed by potentially lackluster demand, though expectations of a U.S. interest rate cuts capped losses.
- Aluminum prices can trade on mixed path as it may move in range of 252-257.while Zinc may move on volatile path as it may trade in range of 275-279.
- Top global miner BHP’s focus on expanding its own copper assets means that it is unlikely to pounce on the planned merger between Anglo American and Teck Resources.
- In the past year, BHP invested $2 billion for a stake in Canada’s Lundin, gaining access to two copper projects in Argentina, while also working to boost production at top copper mine Escondida in Chile.
ENERGY
- Crude oil may trade with mixed path as it can move in range of 5550-5660. Oil prices were flat on Thursday, cooling from the previous session as weak demand in the United States and broad oversupply risks countered concern over attacks in the Middle East and Russia’s war in Ukraine.
- The benchmark contracts gained more than $1 each on Wednesday following Israel’s attack on Hamas leadership in Qatar the day before, and as Poland scrambled its own and NATO air defences to shoot down suspected Russian drones that had strayed into its airspace during an attack on western Ukraine.
- But neither the Middle East attacks nor the downing of the drones in Poland held any immediate risk of disruption to oil supplies, and attention turned to supply-and-demand balances, with rising oil stocks, falling producer prices and a slowing labour market pointing to a softening U.S. economy.
- Natural gas may remain on mixed path as it can move in range of 262-273.
Disclosure
Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, 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 and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.
AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZFinstock 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, LakshyaImpex Private Limited and Launchpad Fintech Private Limited are associates of GCML.
This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.
Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.
AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZFinstock 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, LakshyaImpex Private Limited and Launchpad Fintech Private Limited are associates of GCML.
This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.
Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.
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