Bullions counter may witness some bounce back as investors are awaiting U.S. economic data that could influence the Federal Reserve's rate-cut timeline. Gold and silver fell sharply in domestic market after sharp reduction of basic import duty to 6% from 10%. This is to bring it in line with CEPA rates for IIBX.
BULLIONS
•Bullions counter may witness some bounce back as investors are awaiting U.S. economic data that could influence the Federal Reserve’s rate-cut timeline. Gold and silver fell sharply in domestic market after sharp reduction of basic import duty to 6% from 10%. This is to bring it in line with CEPA rates for IIBX.
•Overall gold can move in range of 68200 -69000 while silver also can move in range of 84500 -86500.
•Investors expect key U.S. data releases this week, including the second-quarter gross domestic product (GDP) reading on Thursday and the June personal consumption expenditures (PCE) price index number on Friday, to offer more cues about the rate-cut timeline.
•The Fed will cut interest rates just twice this year, in September and December, as resilient U.S. consumer demand warrants a cautious approach despite easing inflation.
BASE METALS
•In base metal counter, Copper prices can trade on weaker path as it can move range of 802-815. Copper prices slid again on Wednesday to trade near a three-and-a-half month low hit in the previous session, as concerns about demand in top consumer China weighed on the market.
•Physical demand in China has been dampened by recent price surges and a protracted property crisis. Further weighing on sentiment was a lack of stimulus from last week’s political meeting.
•However, miner Freeport-McMoran remains bullish on copper demand, helped by massive investment in the power grid, renewable generation technology, infrastructure and transportation.
•Aluminium prices are expected to move in lower in range of 213-219.
ENERGY
•Crude oil may trade on lower path as it may move in range of 6410-6560. Falling U.S. crude inventories caused oil prices to rebound on Wednesday after several days of decline, while expectations for a nearing ceasefire deal in the Middle East kept prices from continuing to climb.
•The API figures showed crude stocks falling by 3.9 million barrels in the week ended July 19, the sources said, speaking on condition of anonymity. Gasoline inventories fell by 2.8 million barrels and distillates shed 1.5 million barrels.
•Oil prices fell to a six-week low on Tuesday, with Brent closing at its lowest level since June 9 on ceasefire talks between Israel and Hamas in a plan outlined by U.S. President Joe Biden in May and mediated by Egypt and Qatar.
•Natural gas (Aug) can trade remain subdued as it can move in range of 180-192.
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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