BULLIONS
Bullions counter may trade on lower path as yellow metal as held steady on Thursday after falling to a two-week low in the previous session as the dollar and Treasury yields held firm ahead of a key inflation reading due later this week. Overall gold can move in range of 70800-71400 while silver (Sep) also can move in range of 87500-89300. The dollar hovered near a roughly two-month high, making gold more expensive for other currency holders, while benchmark 10-year yields also edged higher. This week, traders are looking forward to the U.S. first-quarter gross domestic product estimates due on Thursday and the personal consumption expenditures (PCE) price index report on Friday to get more cues on the timing and scale of possible rate cuts this year. Sales of new U.S. single-family homes dropped to a six-month low in May as a jump in mortgage rates weighed on demand, offering more evidence that the housing market recovery was faltering. Federal Reserve Governor Lisa Cook said on Tuesday the U.S. central bank is on track for a rate cut if the economy’s performance meets her expectations, but she declined to say when the Fed will be able to act.
BASE METALS
In base metal counter, Copper prices can trade on weaker path as it can move range of 832-845. Inventories in Shanghai Futures Exchange warehouses decreased but remain elevated compared to earlier in the year. This surplus in LME stocks has driven cash copper to trade at a record discount of approximately $135 per ton against the three-month contract, reflecting ample supply conditions. Geopolitically, concerns over industrial metals persist amidst growing protectionism, exemplified by the EU’s plans to impose tariffs on Chinese-made electric vehicles. The International Copper Study Group reported a surplus of 13,000 metric tons in the global refined copper market for April, down from 123,000 tons in March. Importantly, China’s unwrought copper imports surged by 15.8% year-on-year in May to 514,000 metric tons, despite weaker physical consumption trends. Aluminium may trade on sideways path as it can move in range of 227-231.

ENERGY
Crude oil may trade on firm path as it may move in range of 6750-6860. Oil prices dipped on Thursday as a surprise build in U.S. stockpiles fuelled fears about slow demand from the world’s top oil consumer, though declines were capped by worries a potential expansion of the Gaza war may disrupt Middle East supplies. The U.S. Energy Information Administration (EIA) reported a 3.6 million barrel jump in the country’s crude oil stocks last week, surprising analysts polled by Reuters who had expected a 2.9 million-barrel drawdown. Product supplied for motor gasoline, a proxy for demand, fell by about 417,000 barrels per day last week, to 8.97 million bpd. The four-week average for demand is about 2% under last year’s levels. In the Middle East, cross-border strains between Israel and Lebanon’s Hezbollah have been escalating in recent weeks, stoking fears of an all-out Israel-Hezbollah war that could draw in other regional powers, including major oil producer Iran. Natural gas can move on stronger path as it can move in range of 230-240.

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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