BULLIONS

Bullions counter may trade with negative bias as yellow metal traded near their weakest levels in more than a month on Wednesday, beaten down by an assurgent U.S. dollar as markets made adjustments to a rising interest rate scenario. Yellow metal can move in range of 58000-58500 while silver also can move in range of 70500-71600. The dollar stood strong at a 10-month high against its major peers as Treasury yields stayed elevated on the prospect of higher-for-longer U.S. rates. There is a 40% chance that the Federal Reserve will need to raise rates “meaningfully” to beat inflation, Minneapolis Fed Bank President Neel Kashkari said on Tuesday. The U.S. personal consumption expenditures (PCE) index, Fed’s preferred inflation measure, is due on Friday. The Labor Department will release the monthly employment report on Oct. 6 followed by the CPI report on Oct. 12. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings touched a more than four-year low.

BASE METALS

In base metal counter, Copper can move on weaker path as it can move in range of 705-716. Several factors contributed to this drop, including the Federal Reserve’s cautious stance, concerns about a potential U.S. government shutdown, and worries about reduced industrial demand due to a slowing Chinese economy. Additionally, rising bond yields and a stronger dollar reduced the appeal of copper. In its recent meeting, the Federal Reserve indicated the likelihood of one more interest rate hike in 2023 and a more gradual easing of monetary policy in 2024, signalling a prolonged period of elevated interest rates. On a positive note, Southern Copper, controlled by Grupo Mexico, anticipates a 17% increase in copper production in Peru this year, reaching 400,000 metric tons, contributing to the company’s overall output growth. This comes after a decline in copper output last year due to community protests disrupting operations at its Cuajone mine. Aluminum can move in range of 203-208.

ENERGY

Crude oil may trade with firm bias as markets focused on supply tightness heading into winter and a “soft landing” for the U.S. economy. Overall it can move in range of 7500-7700. Industry data released on Tuesday showed U.S. crude oil stockpiles rose last week by about 1.6 million barrels, against analysts’ expectations for a drop of about 300,000 barrels. However, markets continued to worry about U.S. crude stockpiles at the key Cushing, Oklahoma, storage hub falling below minimum operating levels. Further drawdowns at Cushing, the delivery point for U.S. crude futures, could also provide new upward pressure on oil markets as it would compound supply tightness stemming from supply cuts by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+. Natural gas prices may move in range of 230-250.

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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