Bullions counter may witness some bounce back as yellow metal edged higher on Monday, aided by a softer dollar and expectations of a U.S. interest rate cut, while spotlight shifted to economic data for further insights into the Federal Reserve's monetary policy path.
BULLIONS
•Bullions counter may witness some bounce back as yellow metal edged higher on Monday, aided by a softer dollar and expectations of a U.S. interest rate cut, while spotlight shifted to economic data for further insights into the Federal Reserve’s monetary policy path.
•Overall gold can move in range of 72800 -73400 while silver also can move in range of 88500 -91500.
•On the political front, U.S. President Joe Biden abandoned his floundering reelection bid on Sunday under growing pressure from his fellow Democrats and endorsed Vice President Kamala Harris to replace him as the party’s candidate to face Republican Donald Trump in the November election.
•Market focus will be on Friday’s U.S. PCE price index data. Other releases include existing home sales, July S&P Global flash PMIs, advance second-quarter GDP, and weekly jobless claims.
BASE METALS
•In base metal counter, Copper prices can trade on weaker path as it can move range of 810-830.
•Due to the sharp decline in copper prices, with a larger drop in overseas markets, the SHFE/LME price ratio rose to a new high since January 2024, prompting importers to actively arrange imports, with active transactions.
•Domestic copper cathode social inventory continued its destocking trend, and under policy influence, the market generally believes that domestic copper cathode demand will increase in the future.
•Aluminium prices are expected to move in lower in range of 218-222.
ENERGY
•Crude oil may trade on mixed path as it may move in range of 6580-6700. Oil prices rose in early trade on Monday as investors keep a lookout for signs of a rate-cut cycle expected to begin as soon as September.
•The U.S. Federal Reserve will next hold a Federal Open Market Committee (FOMC) meeting on interest rates on July 30-31, at which investors expect the Fed to keep the rates unchanged, while looking for any signal of a cut coming later in the year.
•On the political front, U.S. President Joe Biden abandoned his reelection bid on Sunday under pressure from fellow Democrats and endorsed Vice President Kamala Harris as the party’s candidate to face Republican Donald Trump in November.
•Natural gas can trade on bounce back from lower levels as it can move in range of 175-186.
•On Sunday, China released a policy document outlining known ambitions, from developing advanced industries to improving the business environment, with analysts spotting no sign of imminent structural shifts in the world’s second-biggest economy.
Disclosure
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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