BULLIONS

Bullions counter can trade with positive bias as tepid dollar made bullion less expensive for overseas buyers, although the prospects of further interest rate hikes by the U.S. Federal Reserve next year kept gains in check. Gold can recover towards 54650 while taking support near 54300. Silver also can move bounce towards 68500 while taking support near 67600. Bullion registered its biggest weekly decline since mid-November on Friday after Fed Chair Jerome Powell said the U.S. central bank would deliver more hikes next year, despite growing recession worries. Fed policymakers may need to lift U.S. borrowing costs above the peak 5.1%, and keep them there perhaps into 2024 to squeeze high inflation out of the economy, three of them signalled on Friday. Gold is considered a hedge against inflation and economic uncertainties, but rising interest rates tend to dent bullion’s appeal as the metal pays no interest.

BASE METALS

In base metal counter, subdued movement can be seen as Copper can move on sideways path as it can move in range of 697-711. Copper inventory across major Chinese markets dipped 13,700 mt to 94,300 mt from last Monday. The dropping SHFE/LME copper price ratio greatly suppressed the demand for import declaration. Besides, the market arrivals of domestic copper were reduced due to the smelters’ overhaul. LME copper inventories fluctuated at low levels, but the expansion of discounts also suppressed the prices. Zinc may move on mixed path as it can move in range of 270-280. Aluminum can move lower in range of 206-214.

ENERGY: Crude oil may trade on upside path as it can move in range of 6200- 6400. Crude oil bounced higher as optimism from China’s reopening and oil demand recovery outweighed concerns of a global recession. On Friday, news outlet Caixin reported that China’s plans to increase flights with a goal to restore the country’s average daily passenger flight volumes to 70% of 2019 levels by Jan. 6. An announcement by the U.S. Energy Department on Friday that it will begin repurchasing crude oil for the Strategic Petroleum Reserve also supported outlook for stronger prices. Natural gas prices can witness further weakness as it can test 500 while taking resistance near 530.

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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