BULLIONS

Bullions counter may trade on strong path after a deadly blast in Gaza fuelled fears about the regional conflict escalating, keeping the safe-haven asset in demand. Gold can move in range of 59400-59800 while silver also can move in range of 71700-72700. Hundreds were killed in a blast at a Gaza City hospital on Tuesday, according to Palestinian officials, igniting protests in the West Bank and around the Middle East, ahead of a visit by U.S. President Joe Biden to Israel. Gold prices have surged over $100 since the conflict began, despite recent robust U.S. economic data fuelling bets of higher-for-longer interest rates, which tend to lift the dollar and bond yields. Production at U.S. factories and retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note. Investors await Federal Reserve Chair Jerome Powell’s speech on Thursday for cues on interest rates.

BASE METALS

In base metal counter, Copper can move on mixed path as it can move in range of 697-707. According to the Ministry of Energy and Mines of Peru (MINEM), copper production in Peru, the world’s second largest copper producing country, amounted to 223,178 tonnes in August 2023, up 7.5% compared to August 2022 (207,588 tonnes). On the macro front, retail sales in the US increased by 0.7% in September, higher than expected 0.3%. This shows that U.S. consumption is still hot, and the market is betting on the probability of raising interest rates in December. The higher-than-expected inflation and consumption data may make the problems facing the Federal Reserve more difficult. In terms of fundamentals, spot transactions in East China were quiet yesterday, and downstream purchases were made at lower prices.  Aluminum can move in range of 201-206.

ENERGY

Crude oil may trade on upbeat path as it may move in range of 7300-7450. Oil prices surged as tension escalated in the Middle East after hundreds were killed in a blast at a Gaza hospital, sparking concerns about potential oil supply disruptions from the region. Markets factored in risk premiums after about 500 Palestinians were killed in a blast at a Gaza City hospital on Tuesday that Israeli and Palestinian officials blamed on each other. Jordan then cancelled a summit it was to host with U.S. President Joe Biden and Egyptian and Palestinian leaders. On the demand side, China’s economy grew faster than expected in the third quarter, official data on Wednesday showed, suggesting the recent recovery may carry enough steam to reach Beijing’s full-year growth target. Natural gas prices may trade on subdued path as it can move in range of 242-260.

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.

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