BULLIONS

Bullions counter may witness volatile movement as today US Federal Reserve interest rate meeting will give further direction to the prices. Meanwhile bullion counter remained on guard for the U.S. Federal Reserve’s policy decision and its updated outlook on economy as a surge in fuel prices adds to inflationary pressures. Yellow metal can move in range of 58800-59300 while silver also can move in range of 71800-73000. The Fed’s rate-setting policy committee will release a new policy statement and interest rate decision at 11.30 pm Indian time, with Fed Chair Jerome Powell scheduled to hold a press conference afterwards. On Tuesday, Treasury Secretary Janet Yellen said U.S. growth needed to slow to a pace more in line with its potential rate to bring inflation back to target levels since the economy was operating at full employment.

BASE METALS

In base metal counter, Copper can move on weaker path as it can move in range of 725-735. In terms of fundamentals, spot quotes fell in East China yesterday. Even though the copper prices shifted downwards and downstream purchasing intentions recovered, the oversupply put pressure on premiums; inventories in South China also increased for five consecutive days, downstream demand did not picked up significantly despite the drop in copper prices. With high inventories and market expectations that the Federal Reserve will maintain high interest rates, copper prices are unlikely to rebound in the near future. On a fundamental level, the growth rate of domestic aluminum supply is decelerating, the import window is open, and the market’s overseas aluminum ingot supply is on the rise. Aluminum can move in range of 199-204.

ENERGY:

Crude oil may witness profit booking at higher levels as it can move in range of 7400-7500. Oil prices retreated further from 10-month highs ahead of the U.S. Federal Reserve’s interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand. Prices fell despite a bigger-than-expected draw in U.S. oil stockpiles and weak U.S. shale output that indicated tight crude supply for the rest of 2023. Investors are awaiting a raft of central bank interest rate decisions this week, including one by the U.S. Federal Reserve on Wednesday, to assess the outlook for economic growth and fuel demand. The Fed is widely expected to keep interest rates on hold, but the focus will be on its policy path, which is unclear. U.S. crude oil stockpiles fell last week by about 5.25 million barrels, according to market sources citing American Petroleum Institute figures on Tuesday. Natural gas prices may move in range of 215-225.

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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