BULLIONS
Bullions counter may open on negative path as yellow metal edged lower as higher U.S. Treasury yields weighed on dollar-priced bullion, while investors kept a close watch on any potential escalation in the Middle East conflict. Overall gold (Jun) can move in range of 72000-72600 while silver (May) also can move in range of 82000-83500. Persistent inflation and higher-for-longer interest rates were cited as key risks to financial stability in the Federal Reserve’s latest survey of U.S. central bank contacts. Explosions echoed over an Iranian city early on last Friday in what sources described as an Israeli attack, but Tehran played down the incident and indicated it had no plans for retaliation.
BASE METALS
In base metal counter, Copper prices can trade on firm path as it can move range of 840-855. In LME Copper edged closer to $10,000 a ton after an April rally fueled by bets that a recovering global economy will lift demand for industrial materials. Metals have posted broad gains in recent weeks, and copper opened Monday with a fresh advance to a two-year high. Signs of improvement in manufacturing activity from the US to China have buoyed metals, and stubborn inflation is attracting renewed wagers on commodities. Investors are contending with an apparent shift in the Federal Reserve’s path toward interest-rate cuts, with Chair Jerome Powell signaling last week that it’s going to take the bank “longer than expected” to be sure that inflation is under control. Zinc may trade on upside path as it may move in range of 250-254.
ENERGY
Crude oil may trade on path as it may move in range of 6720-6900. Recently Iran’s efforts to downplay reported Israeli attacks, signalling a potential de-escalation of tensions in the Middle East. However, the market remained sensitive to geopolitical developments, especially as U.S. lawmakers proposed sanctions on Iran’s oil exports as part of a Ukraine aid package. This move could affect global oil trade, particularly involving Chinese financial institutions. However, demand-side concerns emerged due to weak March economic data from China, the world’s top crude importer, and fears of delayed interest rate cuts by the US Federal Reserve. Furthermore, the reimposition of sanctions on Venezuelan oil by the US and potential new restrictions on Iranian oil by the EU added to the market’s complexity. Meanwhile, the US Energy Information Administration (EIA) reported an anticipated increase in oil output from top shale-producing regions in May, reaching the highest level in five months. This rise, particularly in the Permian basin, could offset any supply constraints. Natural gas prices may trade on mixed as it may move in range of 142-148.

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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