BULLIONS

Bullions counter may continue to remain on volatile path as traders awaited more economic data that could steer hopes for a mid-year rate cut by the U.S. Federal Reserve. Overall gold can move in range of 65500-66000 while silver also can move in range of 74000-76000. The Fed is expected to hold rates steady at its policy meeting next week, but the focus will be on the ‘dot plot’ projections. The U.S. central bank in its December meeting pencilled three-quarter-point rate cuts for 2024. Investors will look at the U.S. retail sales data, the producer prices index (PPI) report and jobless claims due later in the day to gauge the U.S. economy’s health and if it will deter the Fed from cutting rates in June. Traders see a 67% chance of a June rate cut, according to LSEG’s interest rate probability app, down from 72% before data showed U.S. consumer prices increased slightly above market expectations in February, suggesting some stickiness in inflation. Chances for a July rate cut stand at 83%.

BASE METALS

In base metal counter, Copper can move on firm path in range of 745-760. Shanghai copper prices jumped more than 3% on Thursday to their highest in nearly three years after Chinese producers agreed to curb output to cope with lower supply of raw material. Mine disruptions and vast global smelting capacity expansion have led to shortage of copper ore, leading to China’s biggest copper smelters to agree to cut output at some loss-making plants, adjust maintenance plans and postpone new projects. China produced 13 million tons of refined copper last year, or 47% of the global output, data by the World Bureau of Metal Statistics showed. It is also the world’s biggest copper consumer. Analysts had forecast the fees to process copper concentrate, which dropped to the lowest in more than a decade and hurt smelters’ profit, could rebound in the second quarter, the seasonal peak of Chinese smelting maintenance. Aluminium may trade on positive path as it may move in range of 202-206.

ENERGY

Crude oil may trade on positive path as it may move in range of 6550-6650. Oil prices edged up in Asia on Thursday, supported by strong demand in the U.S. after gasoline stocks hit a three month low and crude stockpiles dropped unexpectedly, with supply concerns remaining after Ukrainian attacks on Russian refineries. Natural gas prices may move on weaker path as it may move in range of 133-143. Natural gas futures fell Wednesday, pressured lower by weak near-term fundamentals sending cash prices to new lows and a looming government storage report Thursday that could show a bearish early season build. NGI’s Spot Gas National Avg. dropped 15.0 cents to $1.135, its second lowest level ever since the price series began in 2013. Underscoring the weak demand for gas this winter and the resulting ballooning gas surpluses, the U.S. Energy Information Administration (EIA) this week slashed its projected 2024 Henry Hub price by 14% to $2.27.

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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