BULLIONS

Bullions may remain on volatile path ahead of a key U.S. inflation reading that could influence the size of the Federal Reserve’s next interest rate hike. Gold can move in range of 50600-51100 while Silver can move in range of 57000-58500. The U.S. Consumer Price Index data is due at 6 pm Indian time and is forecast to come in at a hot 8.1% year-on-year in September, which could cement expectations of another big rate hike from the Fed. On the physical front, the London Bullion Market Association said on Wednesday it wants to recognise firms that gather and refine gold dug up by small-scale miners in developing countries.

BASE METALS

In base metal counter, Copper can trade with weak bias as it can move in range of 644-660. Significant volumes of unwanted Russian-origin copper have been deposited in London Metal Exchange approved warehouses in Germany, the Netherlands and Taiwan since the middle of September. Zinc may remain sideways bias as it can move in range of 269-275. Aluminum can trade with upside bias as it can test 210 in MCX. The Biden administration is weighing restricting imports of Russian aluminum as it charts possible responses to Moscow’s military escalation in Ukraine. Such a move, which has not been finalized, would likely boost global prices for the metal used in a wide range of consumer products and could reverse a previous White House stance that such sanctions could wreak havoc on global markets.

ENERGY

Crude oil may remain on sideways path as weakening global demand outlook is keeping the prices under pressure while OPEC production cut decision to cap the downside. Overall it can move in range of 7100-7400. Both OPEC and the U.S. Energy Department have cut their demand outlooks, while a flare-up in COVID-19 cases in China has sparked fresh demand concerns for the world’s top crude importing-country. Last week, the producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia pushed prices higher when it agreed to cut supply by 2 million barrels per day (bpd). But OPEC on Wednesday cut its outlook for demand growth this year by between 460,000 bpd and 2.64 million bpd, citing the resurgence of China’s COVID-19 containment measures and high inflation. Natural gas prices may trade sideways in range of 520-545 in MCX.

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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