Bullions counter may witness short covering as prices of safe-haven gold climbed on heightened geopolitical tensions in the Middle East and amid expectations of a U.S. rate cut in September, while focus shifted to the Federal Reserve's policy meeting due later this week.
BULLIONS
•Bullions counter may witness short covering as prices of safe-haven gold climbed on heightened geopolitical tensions in the Middle East and amid expectations of a U.S. rate cut in September, while focus shifted to the Federal Reserve’s policy meeting due later this week.
•Overall gold can move in range of 68500 -69200 while silver also can move in range of 81000 -82500.
•The U.S. central bank’s Federal Open Market Committee meets on July 30-31 and is expected to keep rates unchanged at 5.25%-5.50%. However, softer U.S. jobs data in June, cooling inflation and comments from top Fed officials have prompted the rate futures market to fully price in a 25 basis-point cut in September.
•The ADP national employment report and non-farm payrolls report are the main data points due this week.
BASE METALS
•In base metal counter, Copper prices can trade on mixed path as it can move range of 792-806. Copper prices struggled in a tight range after three straight weeks of declines, with investors looking more cues on the global economic outlook from the Federal Reserve meeting and U.S. data releases this week.
•After a benign June inflation report last week, markets are wagering the Fed will lay the groundwork for a September rate cut at its policy meeting on Wednesday. Also due this week is the U.S. jobs report for July, closely watched surveys on U.S. and global manufacturing, along with Eurozone gross domestic product and inflation data.
Aluminium prices are expected to move in lower in range of 210-214.
ENERGY
•Crude oil may trade on mixed path as it may move in range of 6440-6540. Oil prices pared last week’s loss, on fears of a widening conflict in the Middle East following a rocket strike in the Israeli-occupied Golan Heights, which Israel and the United States blamed on Lebanese armed group Hezbollah.
On Sunday, Israel’s security cabinet authorised Prime Minister Benjamin Netanyahu’s government to decide on the “manner and timing” of a response to the Saturday’s rocket strike in the Golan Heights that killed 12 teenagers and children.
•Natural gas can remain on mixed path as it can move in range of 170-185.
•Iran-backed Hezbollah denied responsibility for the attack, the deadliest in Israel or Israeli-annexed territory since Palestinian militant group Hamas’ Oct. 7 assault sparked the war in Gaza. That conflict has spread to several fronts and risks spilling into a wider regional conflict.
Disclosure
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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