DAILY MARKET NEWS AND OUTLOOK

BULLIONS

Bullions counter may trade with mixed bias with some short covering can be seen at lower levels. Prices lingered near a one-week low touched in the previous session as the U.S. dollar and Treasury yields reaped the returns of the Federal Reserve’s hawkish stance on interest rates. Yellow metal can move in range of 58700-59000 while silver also can move in range of 72000-73500. Central banks for the world’s biggest economies have served notice that they will keep interest rates as high as needed to tame inflation, even as two years of unprecedented global policy tightening reach a peak. U.S. jobless claims dropped to an eight-month low last week, pointing to persistent labor market tightness even as job growth is cooling. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.07% to 878.83 tonnes on Thursday.

BASE METALS

In base metal counter, Copper can move on weaker path as it can move in range of 712-727. Copper inventories in LME-registered warehouses surged to their highest level since May 2022, reaching 162,900 tons. This uptick followed deliveries of 7,200 tons to warehouses in Hamburg, Rotterdam, and New Orleans, indicating ample immediate supply. On the supply-demand front, the global refined copper market showed a deficit of 19,000 metric tons in July, a decrease from June’s 72,000 metric tons deficit, according to the International Copper Study Group (ICSG). Aluminum can move in range of 202-208. World refined copper output in July stood at 2.30 million metric tons, slightly lower than consumption at 2.32 million metric tons.

ENERGY:

Crude oil may witness lower level buying as oil prices rose on concerns that a Russian ban on fuel exports could tighten global supply outweighed fears that further U.S. interest rate hikes could dent demand, but they were still headed for their first weekly loss in four weeks. Overall it can move in range of 7400-7600. Trading remained choppy amid a tug-of-war between supply fears that were reinforced by a Russian ban on fuel exports and worries over slower demand due to tighter monetary policies in the United States and Europe.  Investors will focus on whether the OPEC+ production cuts are being implemented as promised and whether the rise in interest rates will reduce demand. The U.S. Federal Reserve on Wednesday maintained interest rates, but stiffened its hawkish stance, projecting a quarter-percentage-point increase to 5.50-5.75% by year-end. That buoyed fears that higher rates could dampen economic growth and fuel demand while boosting the U.S. dollar to its highest since early March, making oil and other commodities more expensive for buyers using other currencies. Natural gas prices may move in range of 210-225.

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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