BULLIONS

Bullions counter may trade with mixed path as investors remained on the sidelines awaiting the U.S. Federal Reserve’s rate-hike verdict due this week. Gold can move in range of 56800-57600 while Silver also can move in range of 68000-69000. Traders are eyeing the Fed’s policy meeting scheduled on Jan. 31-Feb. 1. The market broadly expects the U.S. central bank to scale back rate hikes to 25 basis points (bps) from 50 bps announced in December. Gold, being a non-yielding asset, tends to benefit when interest rates are low as it reduces the opportunity cost of holding bullion. Data on Friday showed that U.S. consumer spending fell in December, while inflation continued to subside, which could give the Fed room to further slow the pace of its rate hikes.

BASE METALS

In base metal counter, Copper can trade on upside path as it can move in range of 778-788. Chinese copper miner MMG Ltd said on Monday its Las Bambas mine in Peru would likely have to halt production from Feb. 1 due to a shortage of “critical supplies” leading to a slowdown of operations. Peru, the world’s second-largest copper producer, has been gripped by growing unrest following weeks of sometimes violent anti-government protests triggered by the ouster of the country’s former president last month. Zinc may move on weaker path as it can move in range of 293-302. Zinc dropped on profit booking as investors further digested the latest economic data for hints on whether the Fed will maintain its hawkish stance. Aluminum can trade subdued path as it can move range of 221-227.  Aluminium dropped on profit booking as better-than-expected fourth-quarter US GDP numbers raised hopes of a soft landing in the economy.

ENERGY: Crude oil may trade on positive path as it can test 6700 while taking support near 6400. Oil prices got support by tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery which would support fuel demand. Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known collectively as OPEC+, are unlikely to tweak its current oil output policy when they meet virtually on Feb. 1. Still, indication of a rise in crude exports from Russia’s Baltic ports in early February caused Brent and WTI to post their first weekly loss in three last week. Natural gas prices can remain on weaker path as it can move range of 215-240. Natural gas settled lower as milder weather has reduced heating demand and production remains strong.

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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