BULLIONS
Bullions counter may trade on volatile path as gold prices inched down on Wednesday ahead of a key U.S. inflation data that could offer insight into the Federal Reserve’s interest rate trajectory. Overall gold can move in range of 72100-72800 while silver also can move in range of 85000-86200. U.S. producer prices increased more than expected in April amid strong gains in the costs of services and goods, indicating that inflation remained elevated early in the second quarter. Meanwhile, Fed Chair Jerome Powell said he expects U.S. inflation to continue declining through 2024 as it did last year and noted it was unlikely the Fed would have to raise interest rates again. Federal Reserve Bank of Cleveland President Loretta Mester said that it was appropriate for the Fed to hold rates steady as it awaits evidence that price pressures are easing further.
BASE METALS
In base metal counter, Copper prices can trade on firm path as it can move range of 890-903. London copper climbed on Wednesday on a weaker U.S. dollar as traders awaited a key U.S. inflation report for clues on the Federal Reserve’s interest rate policy. The dollar traded near a one-month low versus the euro on Wednesday amid lower Treasury yields. A weaker dollar makes it cheaper to buy the greenback-priced commodity. Elsewhere, U.S. copper prices on the CME hit a record peak on Tuesday, fuelled by robust demand in the United States and fund buying. Zinc may move sideways in range of 263-270.
ENERGY
Crude oil may trade in green as it may move in range of 6510-6620. Oil prices rose in early trade on Wednesday as large wildfires were threatening Canada’s oil sands and as the market expected U.S. crude oil and gasoline inventories to show a drawdown later in the day. A large wildfire was approaching Fort McMurray, the hub for Canada’s oil sands industry with production of around 3.3 million barrels per day, or two-thirds of the country’s total output, and thousands in suburbs were told to evacuate. U.S. producer prices rose more than expected in April and, even if the prospect for rate cuts has become less certain, Federal Reserve Chair Jerome Powell said it remained unlikely the Fed would have to raise rates any further. The API figures showed crude stocks were down by 3.104 million barrels in the week ended May 10, the sources said on condition of anonymity. Gasoline inventories fell by 1.269 million barrels, and distillates rose by 673,000 barrels. Natural gas prices trade on mixed path as it may move in range of 190-205.

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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