BULLIONS

Bullions counter may trade on volatile path as yellow metal held steady above the key $2,000 level on Wednesday, supported by prospects of interest rate cuts from the Federal Reserve next year, while investors awaited U.S. inflation numbers later this week. Gold can move in range of 62300-62700 while silver also can move in range of 74500-75500. Last week, the Fed indicated its tightening phase was at an end and signaled that rate cuts are in the cards for 2024. Atlanta Fed President Raphael Bostic on Tuesday said there is no current “urgency” for the Fed to reduce U.S. interest rates given the strength of the economy. Markets are pricing in about a 75% chance of a Fed rate cut in March, according to CME FedWatch tool. Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion. Investors now await 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 720-735. Shanghai copper prices climbed on Wednesday after a two-session slide, with tighter global inventories, mine supply disruptions and a weaker U.S. dollar supporting the market. The Shanghai market followed a rally in London prices on Tuesday amid mine closures and falling stocks in warehouses approved by the London Metal Exchange (LME). Also lending support to the market was a weaker dollar, as traders continued to sell the currency on bets that the U.S. Federal Reserve will soon begin cutting interest rates, and ahead of inflation data due later this week. Zinc can move in range of 224-230.

ENERGY

Crude oil may trade on volatile path as it may move in range of 6050-6250. Oil prices moved higher on jitters over global trade disruption and geopolitical tensions in the Middle East following Houthi attacks on ships in the Red Sea. Washington launched a task force to safeguard Red Sea commerce as attacks by Iran-backed Yemeni militants forced major shipping companies to reroute, stoking fears of sustained disruptions to global trade. The U.S. bought 2.1 million barrels of crude for delivery in February, its Energy Department said on Tuesday, bringing total purchases to about 11 million barrels as it continued to replenish the Strategic Petroleum Reserve (SPR) after the largest sale in history last year. The Houthis vowed to defy a U.S.-led naval mission and to keep targeting Red Sea shipping in support of Palestinian enclave Gaza’s ruling Hamas movement. About 12% of world shipping traffic passes up the Red Sea and through the Suez Canal. However, the impact on oil supply has been limited so far, analysts said, as the bulk of Middle East crude is exported via the Strait of Hormuz. Natural gas prices may remain on firm path as it can move in range of 209-222.

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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