BULLIONS
Bullions counter may trade on mixed path as a steady U.S. dollar made bullion less affordable for overseas buyers, while investors awaited further clues on when the U.S. Federal Reserve would deliver its first interest rate cut. Overall gold can move in range of 70700-71500 while silver also can move in range of 82000-83000. The U.S. personal consumption expenditures (PCE) price index increased 0.3% last month, in line with forecasts, a development that is unlikely to change expectations that the Fed will hold off cutting interest rates until September. Physical gold dealers in India charged premiums last week for the first time in nearly two months as a pullback in domestic prices lured buyers, while premiums in top consumer China slipped. China’s industrial profits fell in March and slowed gains for the quarter compared to the first two months, raising doubts about the strength of a recovery for the world’s second-biggest economy.
BASE METALS
In base metal counter, Copper prices can trade on firm path as it can move range of 856-868. Prices of copper opened the week higher on Monday, driven by dwindling raw material supply and investors’ focus on a potential BHP Group-Anglo American deal that would make the world’s largest copper miner. Shortages of copper ore and concentrate, triggered by the closure of the big Cobre Panama mine in December, sent the processing fees for copper to negative for the first time last week. BHP Group is considering making an improved offer in coming weeks but the group has not yet made a decision on the size and structure of the new proposal. The Federal Reserve’s May 1 policy review is the prime focus for markets this week, with investors already anticipating a delay in its rate cuts after a batch of sticky U.S. inflation and as officials including Chair Jerome Powell emphasise even those plans are dependent on data. Zinc may move in range of 251-257.
ENERGY
Crude oil may remain on negative path as it may move in range of 6850-7050. Oil prices fell erasing gains from Friday as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East and U.S. inflation data further dimmed the prospects of interest rate cuts anytime soon. Stepped-up efforts to mediate a ceasefire between Israel and Hamas moderated geopolitical tensions and contributed to the weak opening on Monday. Israel’s foreign minister said on Saturday a planned incursion into Rafah, where more than one million displaced Palestinians are sheltering, could be put off in the event of a deal that involves the release of Israeli hostages. U.S. inflation rose 2.7% in the 12 months through March, data on Friday showed, above the Fed’s target of 2%. Lower inflation would have increased the likelihood of interest rate cuts, which would stimulate economic growth and oil demand. Natural gas prices may remain on firm path as it may move in range of 160-167.

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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