BULLIONS

Bullion counter can trade on weaker path as stronger U.S. dollar and expectations of big interest rate hikes from the Federal Reserve kept prices under pressure. Gold (Oct) can move lower towards 49700 while taking resistance near 50200 while Silver (Dec) can dip towards 56500 while taking resistance near 57500. The dollar index edged higher towards recent peaks, as hotter-than-expected inflation data boosted bets for even more aggressive monetary policy tightening by the Fed. Fed funds futures are pricing in a 37% chance that the U.S. central bank will hike rates by 100 basis points at its policy meeting next week. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.24% to 960.56 tonnes on Wednesday from 962.88 tonnes on Tuesday.

BASE METALS

In base metal counter, Copper can recover towards 660 while taking support near 640. On the macro front, the US dollar index fell overnight as the market gradually digested the impact of US inflation data. Under the expectation of aggressive interest rate hikes by the US Fed, the market was worried about the economic outlook. Zinc may trade in range 280-300 in MCX. Aluminum can also recover towards 205. On the whole, though the downstream demand has not yet improved substantially in September, and direction is slightly bullish with frequent overseas production cuts as well as digested macro sentiment.

ENERGY

Crude oil may continue to move higher as it can move towards 7250 while taking support near 6900. The International Energy Agency (IEA) said Wednesday it expects widespread switching from gas to oil for heating purposes, saying it will average 700,000 barrels per day (bpd) in October 2022 to March 2023 – double the level of a year ago. The increasing likelihood of a U.S. rail stoppage due to an ongoing labour dispute is also adding support to the market. Three unions are negotiating for a new contract that could affect rail shipments, which are important for crude and product deliveries. Natural gas prices can jump further higher as it can test 740 in MCX. Supply/demand tightening and “minor bullish weather trends” may have contributed to recent price gains.

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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