BULLIONS
Bullions counter may trade in red as yellow metal held steady on Friday, and were on track for their first weekly gain in four, despite falling over 1% in the previous session after the U.S. Federal Reserve projected just one interest rate cut this year. Overall gold can move in range of 71000-71400 while silver also can move in range of 87300-89000. Fed policymakers, on Wednesday, pushed out the start of rate cuts to perhaps as late as December, implying they will lower rates only once this year, dashing hopes of two cuts and despite some progress in controlling inflation. U.S. producer prices unexpectedly fell in May amid lower energy costs, indicating that inflation subsided after surging in the first quarter.
BASE METALS
In base metal counter, Copper prices can trade on sideways path as it can move range of 852-865. On the macro front, the hawkish signals previously released by the US Fed strengthened the US dollar index, putting pressure on copper prices. In terms of fundamentals, after a certain decline in copper prices, some downstream sectors moderately replenished their inventories, but due to concerns about the continuous decline in future prices, current stockpiling is only based on immediate needs. Additionally, some smelters are still under maintenance, together with some domestic mainstream smelters arranging copper cathode exports, easing the pressure of abundant spot supply. On the fundamentals, the arrival of the consumption off-season together with increasing overseas market frictions has led to a decline in orders for aluminum processing enterprises, and the supply and demand relationship in the domestic aluminum market is gradually weakening. Aluminium may trade on sideways path as it can move in range of 230-238.

ENERGY
Crude oil may trade on sideways path as it may move in range of 6400-6600. Oil prices fell on Friday but were on track for their first weekly gain in four weeks as markets assessed the impact of higher-for-longer U.S. interest rates versus solid outlooks for crude and fuel demand this year. In a see-saw week, oil prices rallied after the Organization of Petroleum Exporting Countries (OPEC) stuck to a forecast for relatively strong growth in global oil demand for 2024 and Goldman Sachs projected solid U.S. fuel demand this summer. That helped to reverse losses in the previous week driven by an agreement by OPEC and its allies, together called OPEC+, to start unwinding their output cuts after September. Further buoying the market, Russia pledged to meet its output obligations under the OPEC+ pact, after saying it exceeded its quota in May. Prices however came off after the U.S. Federal Reserve held interest rates steady and pushed out the start of rate cuts to as late as December, with the Fed officials’ comments stoking worries that economic growth could slow and dampen fuel demand. Natural gas can move in range of 240-250.

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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