Bullions counter may trade on mixed bias as traders pared bets of rate cuts by the U.S. Federal Reserve this year following remarks by some policymakers, while the market awaited key U.S. inflation data due later this week.
BULLIONS
Bullions counter may trade on mixed bias as traders pared bets of rate cuts by the U.S. Federal Reserve this year following remarks by some policymakers, while the market awaited key U.S. inflation data due later this week. Overall gold can move in range of 71800-72400 while silver also can move in range of 95000-97000. Investors are now waiting for the April reading on the personal consumption expenditures (PCE) price index, the U.S. central bank’s preferred inflation gauge, which is due on Friday. Traders’ bets signalled growing skepticism that the Fed will cut rates more than once in 2024, currently pricing in about a 60% chance of a rate cut by November, according to the CME FedWatch Tool. Israel’s military denied striking a tent camp west of Rafah after Gaza health authorities said Israeli tank shelling had killed at least 21 people there, in an area Israel has designated a civilian evacuation zone. Gold is used as a hedge against inflation, and economic and geopolitical uncertainty.
BASE METALS
In base metal counter, Copper prices can trade on firm note as it can move range of 902-917. Copper was buoyed by positive developments in China, including property stimulus measures and better-than-expected industrial output data. The rise was also supported by systematic buying, with funds betting on a shortage of copper due to the metal’s critical role in the transition to a green economy. Despite these bullish factors, copper inventory levels in China, the world’s largest consumer, remain at a four-year high, indicating some softness in demand. This inventory stands close to 300,000 tons in Shanghai Futures Exchange (SHFE) monitored warehouses, with seasonal withdrawals slower than usual due to the recent high prices surpassing $10,000 a ton. On the global front, the International Copper Study Group (ICSG) reported a surplus of 125,000 metric tons in the refined copper market for March, down from a 191,000 metric ton surplus in February. World refined copper output in March was 2.33 million metric tons, while consumption stood at 2.20 million metric tons. In terms of production Aluminium may move on upside path as it can move in range of 245-250.
ENERGY
Crude oil may trade on positive path as it may move in range of 6620-6750. Oil prices rose on expectations major producers will maintain production cuts at a meeting this Sunday at the same time fuel consumption should begin rising with the start of the peak summer demand season. The Memorial Day holiday on Monday signals the start of the peak demand season in the U.S., the world’s biggest oil consumer, and keeping the production cuts in place should keep prices supported as consumption rises. Increased fighting in the Gaza Strip as Israeli tanks advanced to the heart of the Rafah section also provided some backing for prices amid concerns of a widening of the conflict to the greater Middle East, a key supply region. Investors were also watching out for U.S. crude inventory data from the American Petroleum Institute for release later in the day. The data was delayed by a day by the Memorial Day holiday on Monday. Natural gas can continue its upside momentum 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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