Bullions counter may trade in red as yellow prices fell after traders gauged Federal Reserve officials' updated interest rate projections, which signalled only one U.S. rate cut this year. Overall gold can move in range of 71200-71700 while silver also can move in range of 87500-89500.
COMMODITY DAILY MARKET NEWS AND OUTLOOK
BULLIONS
Bullions counter may trade in red as yellow prices fell after traders gauged Federal Reserve officials’ updated interest rate projections, which signalled only one U.S. rate cut this year. Overall gold can move in range of 71200-71700 while silver also can move in range of 87500-89500. The U.S. Fed held interest rates steady on Wednesday, while policymakers indicated they expect to cut rates only once in 2024. Fed chair Jerome Powell said the inflation outlook offered by the Fed is “a fairly conservative forecast” that may not be borne out by coming data, and is subject to revision. China’s consumer inflation held steady in May while producer price declines eased, but the underlying trend suggests Beijing would need to do more to prop up feeble domestic demand and an uneven economic recovery. Powell added that better-than-expected inflation consumer price index data was something officials welcome.
BASE METALS
In base metal counter, Copper prices can trade in red as it can move range of 853-865. The official manufacturing PMI in May showed a contraction, and trade data indicated a 7.1% annual drop in copper ore imports, despite surging prices. Refiners have turned to scrap to support output, leading to a rise in Chinese inventories to their highest since 2020. This surplus has kept prices of deliveries from Shanghai bonded warehouses at a discount to LME for a month, despite a 13% year-to-date increase fueled by speculative bets of looming shortages. The global refined copper market showed a 125,000 metric tons surplus in March, according to the International Copper Study Group (ICSG), compared to a 191,000 metric tons surplus in February. Despite weak physical consumption, China’s unwrought copper imports in May rose by 15.8% year-on-year, surpassing market expectations. However, imports of copper concentrate declined by 11.7% compared to last year. Aluminium may trade in red as it can move in range of 230-235.
ENERGY
Crude oil may trade in red as it may move in range of 6450-6650. Oil prices fell in early trade on Wednesday as investors digested news that the U.S. Federal Reserve has opted against cutting interest rates in the near future, while ample U.S. crude and fuel stocks further weighed on the market. Fed Chair Jerome Powell noted in a press conference after the end of a two-day policy meeting that inflation had fallen without a major blow to the economy, and he said there was no reason to think that can’t go on. In the latest attack on shipping, Iran-allied Houthi militants on Wednesday took responsibility for small watercraft and missile attacks that left a Greek-owned coal carrier in need of rescue near Yemen’s Red Sea port of Hodeidah. On the supply side, U.S. crude stockpiles rose more than expected last week, driven largely by a jump in imports, while fuel inventories also increased more than anticipated, data from the Energy Information Administration (EIA) showed on Wednesday. Natural gas can move in range of 248-257.
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.
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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