Bullions counter may remain in range as today fed interest rate decision will give further direction to the prices. Gold can move in range of 59000-59400 while silver also can move in range of 74000-75500. Gold is highly sensitive to rising interest rates as they increase the opportunity cost of holding non-yielding bullion.
BULLIONS
Bullions counter may remain in range as today fed interest rate decision will give further direction to the prices. Gold can move in range of 59000-59400 while silver also can move in range of 74000-75500. Gold is highly sensitive to rising interest rates as they increase the opportunity cost of holding non-yielding bullion. The dollar and U.S. Treasury yields were close to their two-week highs from Tuesday, weighing on zero-interest-bearing gold. Along with policy guidance from the European Central Bank, traders also await second-quarter U.S. GDP data due on Thursday. The U.S. economy was forecasted to have risen 1.8% during April-June compared to a 2% rise in the first quarter. Markets will also keep an eye out for the June personal consumption expenditures (PCE) index due on Friday. Core PCE, the Fed’s preferred inflation gauge, was estimated to have climbed 0.2% in June compared to a 0.3% rise in May.
BASE METALS
In base metal counter, Copper can trade on positive path as it can move in range of 735-745. On the macro front, the US consumer confidence index rose to a two-year high in July, the labor market continued to be tight and inflation subsided, boosting the short-term economic outlook. Consumers remain concerned about a recession next year after the Federal Reserve sharply raises interest rates. In terms of fundamentals, copper prices rose yesterday, downstream demand was already weak towards the end of the month, and the spot market in East China was less active. Zinc may remain on sideways path as it can move in range of 216-223. Aluminum can move in range of 197-205.
ENERGY: Crude oil may trade on strong path as it may move in range of 6400-6550. Oil prices eased on Wednesday, sliding from three-month highs hit the previous day after industry data showed an expected rise in U.S. crude stockpiles, but losses were capped amid signs of tighter global supply and hopes for China’s economic stimulus. U.S. crude stocks rose by about 1.32 million barrels in the week ended July 21, according to market sources citing American Petroleum Institute figures on Tuesday. The Fed’s policy meeting started on Tuesday, with most market participants expecting the central bank to deliver a 25 basis-point rate hike when the meeting concludes on Wednesday. With crude supplies expected to tighten due to output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and allies, oil prices have already clinched four weekly gains in a row. Natural gas prices may trade on strong path in range in range of 217-225.
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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