BULLIONS

Bullions counter may trade on volatile path as yellow metal gained after softer U.S. economic data pushed the U.S. dollar and Treasury yields lower, while market focus shifted to commentary from Federal Reserve officials for cues on the timeline for interest rate cut. Overall gold can move in range of 61400-61800 while silver also can move in range of 70700-71600. U.S. retail sales fell more than expected in January. A separate report from the Labor Department showed initial claims for state unemployment benefits fell 8,000 to a seasonally adjusted 212,000. The main driver for gold in the short term is interest rate expectations – there is risk that gold is going to remain under pressure in the short term until the Fed actually says it is time to cut rates.

BASE METALS

In base metal counter, Copper can move on upside path in range of 705-725.  Copper prices rose to a one-week high as weaker-than-expected U.S. retail sales data revived hopes for an interest rate cut from the Federal Reserve in June and lifted risk sentiment among investors. Data on Thursday showed U.S. retail sales fell more than expected in January, pulled down by declines in receipts at auto dealerships and gasoline service stations. Copper, widely used in power and construction, is down more than 3% this month on concerns about demand from top consumer China and its property sector in particular, though activity is muted this week as China celebrates the Lunar New Year. Aluminium may trade on downside path in range of 197-203.

ENERGY

Crude oil may trade on mixed path as it may move in range of 6400-6500. Oil prices traded mixed as slowing demand forecast and weak U.S. retail sales data that sparked optimism about U.S. interest rate cuts. A larger-than-expected drop in U.S. retail sales prompted hopes the Federal Reserve will soon start cutting interest rates in coming months, which could be positive for oil demand.  International Energy Agency (IEA), stated that global oil demand growth is losing momentum and trimmed its 2024 growth forecast, in sharp contrast to the view held by the Organization of the Petroleum Exporting Countries (OPEC). In the Middle East, Hezbollah said on Thursday it fired dozens of rockets at a northern Israeli town in a “preliminary response” to the killing of 10 civilians in southern Lebanon, the deadliest day for Lebanese civilians in four months of cross-border hostilities. Natural gas prices may continue to tumble lower as it may move in range of 125-145.

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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