BULLIONS

Bullions counter may trade in red as U.S. dollar and bond yields powered higher after the Federal Reserve signalled another rate hike this year and a tighter monetary policy through 2024 than previously expected. Yellow metal can move in range of 58800-59200 while silver also can move in range of 71500-73000. The U.S. dollar index climbed 0.4% to its highest since March 9, while two-year Treasury yields rose to 17-year high after the Fed held interest rates steady on Wednesday but stiffened a hawkish monetary policy stance. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 878.25 metric tons on Wednesday. Russia’s gold reserves stood at 75.0 million troy ounces as of the start of September, the central bank said on Wednesday.

BASE METALS

In base metal counter, Copper can move on weaker path as it can move in range of 722-732. On the macro front, the Federal Reserve kept interest rates unchanged in the range of 5.25-5.5%. In terms of fundamentals, there were still inflows of imported copper. And the market expects warehouse receipts to gradually enter the spot market. The decline in copper prices will stimulate downstream sentiment to prepare stocks in advance for the National Day holidays. It is expected that the upward space for copper prices will be limited in the near future. Aluminum can move in range of 201-205. 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.

ENERGY:

Crude oil may witness profit booking at higher levels as it can move in range of 7300-7450. Oil prices fell after posting the largest fall in a month in the previous session, as U.S. interest rate hike expectations offset the impact of drawdowns in U.S. crude stockpiles. The U.S. Federal Reserve maintained interest rates after its Federal Open Market Committee (FOMC) meeting, but stiffened its hawkish stance with a rate increase projected by year-end which could dampen economic growth and overall fuel demand. Fed policymakers still see the bank’s benchmark overnight rate range peaking this year at 5.50% to 5.75%, a quarter of a percentage point above the current range. The hawkish stance also led to the U.S. dollar surging to its highest since early March, placing downside pressure on oil prices. Natural gas prices may move in range of 220-230.

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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