BULLIONS

Bullions counter may trade on upside path as the U.S. dollar edged lower while investors awaited interest rate decisions from a number of central banks and a slew of economic data in the United States this week. Gold can move in range of 61700-62200 while silver also can move in range of 70500-71800. Gold is treading water until it gets the next clues as to when the Federal Reserve may pull the trigger on the first rate cut. Federal Reserve officials last week said the U.S. central bank needs more inflation data in hand before any rate cut judgment could be made and that the baseline for cuts to start was in the third quarter. Investors will also be watching out for U.S. flash PMI report on Wednesday, fourth-quarter advance GDP estimates due on Thursday and personal consumption expenditures data on Friday, before the Fed’s next meeting on Jan. 30-31.

BASE METALS

In base metal counter, Copper can move in range of 711-716. China imported 10,104 metric tons of copper ore and concentrate from Australia last month, bringing the 2023 total volumes to the highest since June 2021, customs data showed on Saturday, as Beijing eased an unofficial ban on Australian imports. Aluminium may trade in range of 192-198. The economic landscape in China added to the bearish sentiment, with the country missing growth forecasts, and the debt-heavy property sector witnessing continued declines in sales. Federal Reserve policymakers’ resistance to multiple rate cuts in the face of persistent inflation fueled a stronger US dollar, further impacting aluminium prices.

ENERGY

Crude oil may trade on mixed path as it may move in range of 6150-6300. Oil prices were little changed on Tuesday as traders weighed a host of conflicting supply and demand worries, with rising tensions in the Middle East and cold weather woes disrupting production in the United States. Both the contracts had settled about 2% higher on Monday, as a Ukrainian drone strike on Novatek’s Ust-Luga fuel export terminal raised supply concerns and drove up prices. In the Middle East, U.S. and British forces have also carried out a fresh round of strikes targeting a Houthi underground storage site and missile and surveillance capabilities used by the Iran-aligned Houthi group. The attacks by the Houthis on vessels in and around the Red Sea region have disrupted global shipping and stoked fears of inflation. The group has said their attacks are in solidarity with Palestinians as Israel strikes Gaza. Natural gas prices may trade on weaker path as it may move in range of 195-210.

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.

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