BULLIONS

Bullions counter may trade on weaker path as yellow metal steadied as the dollar pulled back slightly from a seven-week peak, while traders focused on negotiations in Washington over raising the U.S. debt ceiling. Gold can move in range of 59800-60300 while silver also can move in range of 71500-74000. The dollar index eased on the day, after hitting a seven-week high in the previous session, partly due to traders dialing back expectations of a rate cut by the Federal Reserve this year. U.S. President Joe Biden and top congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government’s $31.4 trillion debt ceiling and avoid an economically catastrophic default. U.S. Treasury yields also rose on Wednesday amid some cautious optimism around lawmakers’ talks to raise the U.S. debt ceiling and on the back of strengthening expectations of higher-for-longer interest rates.

BASE METALS

In base metal counter, Copper can remain on weaker note as it can move in range of 718-726. On the macro front, the US dollar index rose on optimism over a deal to extend the debt ceiling and avoid a US default. Also boosting the dollar was a round of solid economic data suggesting the Fed’s rate cuts may be delayed rather than brought forward. Overseas demand for aluminium semis is not good. Consumption will hardly improve in May. However, with the rapid decline in global aluminium ingot inventories, the risk of overseas short squeeze has increased. Zinc may also tad further lower as it can move in range of 223-232. Aluminum can trade on sideways path as it can move in range of 205-210. The domestic operating aluminium capacity continued to increase in May.

ENERGY: Crude oil may witness trade on volatile path as it can move in range of 5900-6100. Oil prices fell in early Asian trade on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging nearly 3% in the previous session on optimism over U.S. fuel demand. A sharp plunge in U.S. gasoline inventories due to demand surging to the highest levels since 2021, and optimism surrounding negotiations over the U.S. debt ceiling, helped the main crude benchmarks settle more than $2 higher on Wednesday. After a months-long standoff, Biden and McCarthy on Tuesday agreed to negotiate directly. A debt agreement needs to be reached and passed by both chambers of Congress before the government runs out of money to pay its bills, which could be as soon as June 1. Natural gas prices trade on firm path as it can move in range of 190-210.

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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