BULLIONS

Bullions counter may trade on firm path as gold can move in range of 62200-62600 while silver also can move in range of 72000-72800. Gold firmed as rising tensions in the Middle East lifted demand for the safe-haven asset, while markets awaited a Federal Reserve policy decision later this week for more clues on the timing of this year’s first U.S. interest rate cut. Washington was considering its response to the first deadly strike on its forces in the Middle East since the Gaza war began after a drone attack in northeastern Jordan at the weekend killed three U.S. servicemen and wounded at least 34. A decision is due on Wednesday from the rate-setting Federal Open Market Committee (FOMC), which took a dovish turn in the December meeting. Last week data showed moderate growth in U.S. prices in December, keeping annual inflation below 3% for a third consecutive month and potentially allowing the Fed to begin cutting interest rates this year.

BASE METALS

In base metal counter, Copper can move in range of 728-735. Despite the positive developments in China, concerns about slowing growth in physical consumption of nonferrous metals and mixed global macroeconomic data tempered further price rallies. The International Copper Study Group (ICSG) reported a 119,000 metric tons deficit in the global refined copper market for November, compared to a 48,000 metric tons deficit in October. World refined copper output in November reached 2.26 million metric tons, while consumption stood at 2.38 million metric tons. When adjusted for changes in inventory in Chinese bonded warehouses, there was a 128,000 metric tons deficit in November, up from a 70,000 metric tons deficit in October, as highlighted by the ICSG. Aluminium may trade on upside path in range of 201-208.

ENERGY

Crude oil may trade on mixed path as it may move in range of 6300-6500. Oil prices got support as escalating geopolitical tensions in major producing region the Middle East fuelled supply concerns. Both the contracts fell over $1 on Monday as a deepening real estate crisis fuelled worries about demand from China, the world’s biggest crude consumer, after a Hong Kong court ordered the liquidation of property giant China Evergrande Group. Oil price trading above US$80/bbl is pricing in some geopolitical risk premium again as flare ups continue in the Middle East region. This could fade out within a week or two if there is no strong reaction from the US. Washington vowed to take “all necessary actions” to defend its troops following a deadly drone attack in Jordan by Iran-backed militants, the first U.S. military deaths since the Israel-Gaza war began, putting markets on edge. Natural gas prices may remain on weaker path as it may move in range of 165-180.

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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