BULLIONS

Bullions counter may trade on mixed note as investors assessed the U.S. Federal Reserve’s rate-hike trajectory after a closely-watched consumer prices report showed still-high inflation. Gold can move in range of 57200-57650 while silver also can move in range of 65600-67500. The Federal Reserve is expected to raise its benchmark rate by 25 basis points next week and again in May, as a government report showed U.S. inflation remained high in February, and concerns of a long-lasting banking crisis eased. The U.S. consumer price index (CPI) rose 0.4% last month, after accelerating 0.5% in January. In the 12 months through February, the CPI increased by 6%. Bullion is often seen as a hedge against inflation, but the opportunity cost of holding the non-yielding asset rises when interest rates are increased to bring down inflation.

BASE METALS

In base metal counter, Copper can trade on weaker path as it can move in range of 755-765. On the macro front, the US CPI in February met market expectations and was lower than the previous value, and did not fall more than expected. Inventories in south China ended a five-day losing streak and rose slightly, mainly due to weakening consumption. At the same time, the downstream is worried that copper prices will continue to fall, and their desire to replenish cargoes was weak. Zinc may trade with subdued path as it can move in range of 255-265. Aluminum can trade on weaker path as it can move in range of 203-208. On the fundamentals side, aluminium production cuts tightened supply in the south China market. Downstream demand has gradually picked up, driving social stocks to fall.

ENERGY: Crude oil may trade on negative path as it can move in range of 5850-6100. Crude oil as a stronger OPEC outlook on China’s demand helped offset bearish global investor sentiment in the wake of the recent U.S. bank failures. The Organization of the Petroleum Exporting Countries (OPEC on Tuesday further raised its forecast for Chinese oil demand growth in 2023 due to the relaxation of the country’s COVID-19 curbs, although it left the global demand total steady, citing potential downside risks for world growth. On the supply side, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman told Energy Intelligence in an interview on Tuesday the OPEC+ alliance – OPEC and allied oil producers including Russia – will stick to production cuts agreed in October until the end of the year. Natural gas prices can witness further bounce back as it can test 225 while taking support near 210.

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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