BULLIONS

Bullions counter may witness some profit booking at higher levels as yellow metal fell as the U.S. dollar and Treasury yields firmed, ahead of economic data and Federal Reserve Chair Jerome Powell’s speech this week, which could steer upcoming interest rate decisions. Gold can move in range of 58800-59200 while silver also can move in range of 70000-72000. U.S. Treasury yields rose to their highest in more than a week, and the dollar also gained, making non-yielding bullion expensive for other currency holders, ahead of U.S. retail sales and industrial production later in the day. Markets speculate Powell’s upcoming speech on Thursday could offer more clarity on the U.S. central bank’s rate stance after dovish signals by top policymakers in the recent weeks. Higher interest rates increases the opportunity cost of holding gold, a non-yielding asset.

BASE METALS

In base metal counter, Copper can move on mixed path as it can move in range of 695-705. Chinese copper markets are showing signs of recovering from the slump that hit the industry in the second quarter pf this year. The clean concentrate spot TCs are declining on increased demand for cargoes and cathode import interest are improving on tighter spot supplies. Copper production in Peru rose 7.5% year-over-year in August, official data showed on Friday, as output of the red metal totaled about 223,000 metric tons for the month. The August data landed below the previous month’s output, according to the Andean country’s ministry of energy and mines. Aluminum can move in range of 201-207.

ENERGY

Crude oil may trade on weaker path in range of 7100-7300. Oil prices fell slightly on Tuesday after a more than $1 slide on Monday amid hopes the U.S. would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the war between Israel and Hamas. U.S. President Joe Biden will make a high-stakes visit to Israel on Wednesday as the country prepares to escalate an offensive against Hamas militants that has set off a humanitarian crisis in Gaza and raised fears of a broader conflict with Iran. The Biden administration has been seeking ways to increase the flow of oil to world markets to alleviate high prices. But any real oil output increase by Venezuela will take time due to lack of recent investments. Venezuela’s government and opposition are set to resume long-suspended talks on Tuesday that President Nicolas Maduro said would benefit the upcoming 2024 election, a move that could lead to Washington easing sanctions, multiple sources said. Natural gas prices may trade on subdued path as it can move in range of 250-270.

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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