BULLIONS

Bullions may remain on volatile path as a hotter-than-expected U.S. inflation reading cemented bets of another hefty Federal Reserve interest rate hike next month. Gold can move in range of 50400-50800 while Silver can move in range of 56500-58500. Data released on Thursday showed U.S. consumer prices increased more than expected in September, as rents surged by the most since 1990 and the cost of food also rose, with core CPI jumping 6.6% on an annual basis. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.12% to 944.31 tonnes on Thursday. The Fed is seen delivering another large rate hike in three weeks’ time and ultimately lifting rates to 4.75%-5% by early next year, if not further, after the inflation report.

BASE METALS

In base metal counter, Copper can trade with upside bias as it can move in range of 653-667. Zinc may remain sideways bias as it can move in range of 269-275. Zinc fell as signs of an increasingly worse macroeconomic backdrop worldwide continued to hamper demand for industrial inputs. China refined zinc output totaled 503,900 mt in September, less than expected. And the output is estimated to add 12,700 mt to 516,700 mt in October. Aluminum can trade with upside bias as it can test 215 in MCX. Aluminium prices rose after news reports suggested that the United States could ban imports from Russia. There are a lot of uncertainties on the macro front, including the United States’ prohibition of Rusal aluminium, the tension between Russia and Ukraine, and the strict domestic pandemic control.

ENERGY

Crude oil may remain on firm path supported by a weaker U.S. dollar and as diesel inventories fell, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production. Overall it can move in range of 7150-7400. Distillate stockpiles which include diesel and heating oil, fell by 4.9 million barrels to 106.1 million barrels, their lowest since May, versus expectations for a 2 million-barrel drop, according to the U.S. Energy Information Administration on Thursday. Meanwhile, Saudi Arabia and the United States continued to clash over a decision by the Organization of Petroleum Exporting Countries and allies, known as OPEC+, last week to cut its oil production target. Natural gas prices may trade firm path as it can test 565 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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