Bullions counter may trade on volatile path as US GDP data to give further direction to the prices
BULLIONS
Bullions counter may trade on volatile path as US GDP data to give further direction to the prices. While investors also focus was on a key U.S. inflation print and remarks from several Federal Reserve officials this week for fresh clues on the central bank’s interest rate trajectory. Overall gold can move in range of 62100-62400 while silver also can move in range of 70200-71400. Fed Governor Michelle Bowman on Tuesday reinforced the U.S. central bank’s patient stance on easing. She signalled that she is in to cut rates, particularly given upside risks to inflation. Markets now await the U.S. Federal Reserve’s preferred gauge of inflation – the core personal consumption expenditures (PCE) price index – on Thursday. Top bullion consumer China’s monthly net gold imports via Hong Kong surged 51% in January to their highest since mid-2018, official data showed on Tuesday.
BASE METALS
In base metal counter, Copper can move on mixed path in range of 723-729. Copper prices were range-bound as a spike in inventories in Chinese exchange warehouses offset tightness in mining supply. Copper inventories in SHFE warehouses more than doubled in just over two weeks to 181,323 tons on Friday, the highest since March last year, suggesting Chinese demand has not made a strong recovery since the Lunar New Year holiday. Meanwhile, copper mine disruptions have created tightness in the ore market and pushed processing fees to multi-year lows and hurt copper smelters’ profit, which could lead to an output cut in refined copper in the long term. Aluminium may trade on weaker path as it may move in range of 195-200.
ENERGY
Crude oil may trade on upside path as it may move in range of 6430-6550. Oil prices slipped in early Asian trade on Wednesday as the prospect of a delayed U.S. rate cutting cycle offset the boost provided by talk of extensions to production cuts from OPEC+. Prices for both crude benchmarks rose more than $1 per barrel after the Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+) will consider extending voluntary oil output cuts into the second quarter, to provide additional support for the market. Two sources said the cuts could be in place until the end of the year. Last November, OPEC+ agreed to voluntary cuts totalling about 2.2 million barrels per day (bpd) for the first quarter this year, led by Saudi Arabia rolling over its own voluntary cut. Natural gas prices may trade on upside path as it may move in range of 146-156.
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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