BULLIONS

Bullions counter may trade on weaker path as yellow metal held steady on Tuesday helped by a weaker dollar, as investors awaited more U.S. economic data this week that could shed light on the Federal Reserve’s monetary policy outlook amid surging market expectations of interest rate cuts. Gold can move in range of 61850-62250 while silver also can move in range of 73700-75200. The Fed last week signalled that the historic tightening of monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024. The Fed is not precommiting to cutting interest rates soon and swiftly, and the jump in market expectations that it will do so is at odds with how the U.S. central bank functions, Chicago Fed President said on Monday. Investors are awaiting a series of U.S. economic data this week, including the November core personal consumption expenditure (PCE) index report, the Fed’s preferred measure of underlying inflation, due on Friday.

BASE METALS

In base metal counter, Copper can witness some bounce back as it can move in range of 715-725. China’s economic strategy for 2024 includes targeting a budget deficit of 3% of GDP, a decrease from this year’s revised ratio of 3.8%. The country remains open to issuing off-budget special bonds if additional fiscal support becomes necessary. Notably, fees for processing copper concentrate in the Chinese spot market dropped by 25% in less than three months, raising concerns about supply tightness. In November, China’s copper cathode output decreased by 3.3% month-on-month but grew by 6.8% year-on-year, totalling 960,800 mt. However, this was 40,400 mt lower than the expected 1 million mt. Planned maintenance, equipment damage, technological upgrades, and tight blister copper supply impacted production. Zinc can move in range of 220-228.

ENERGY

Crude oil may trade on volatile path as it may move in range of 5950-6150. Oil prices were mixed with the U.S. benchmark dipping while Brent extended gains from the previous session, as attacks by Yemen’s Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels. Both benchmarks rose more than 1% on Monday on concerns about shippers diverting vessels away from the Red Sea. Meanwhile, the United States will push shippers to disclose more information about their Russian oil dealings in a bid to enforce sanctions, U.S. officials said on Monday, while acknowledging that a big chunk of the trade has already escaped Western oversight after Russia built a parallel fleet. Natural gas prices may remain on negative path as it can move in range of 205-215.

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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