BULLIONS

Bullions counter may trade on upside path as yellow metal rose for a fourth consecutive session and hit a more than six-month high, driven by a retreating dollar and expectations that the U.S. Federal Reserve has finished hiking interest rates. Gold (Feb) can move in range of 62600-63000 while Silver (Mar) also can move in range of 76600-77600. Fed policymakers look increasingly comfortable closing out the year with interest rates on hold and waiting before cutting them. Lower rates reduce the opportunity cost of holding non-interest-bearing bullion. Investors will monitor Thursday’s U.S. Personal Consumption Expenditures (PCE) data, the Fed’s preferred inflation indicator. The focus is also on the revised U.S. third-quarter GDP figures scheduled for Wednesday.

BASE METALS

In base metal counter, Copper can move on subdued path as it can move in range of 716-725. China’s imports of refined copper have quietly accelerated over recent months, taking volumes to a year-to-date high in October. Inbound flows have been boosted by catch-up shipments from the Democratic Republic of Congo, where China’s CMOC Group was blocked from exporting between June last year and April this year during a prolonged stand-off with the government over taxes. Aluminum can move sideways in range of 200-204. Zinc can move downside in range of 223-228. China imported 353,000 metric tons of refined copper in October, which was the highest monthly volume this year. Cumulative imports of 2.99 million tons over the first 10 months were just 4% below last year’s tally, or 6% on a net basis factoring in slightly higher exports this year.

ENERGY

Crude oil may witness upside movement as it may move in range of 6420-6520. Oil prices fell in early on weaker-than-expected Chinese manufacturing data, but investors maintained caution ahead of an OPEC+ meeting where production cuts are expected. China’s manufacturing activity contracted for a second straight month in November and at a quicker pace than expected, an official factory survey showed on Thursday, suggesting more policy support measures are needed to help shore up economic growth in the world’s largest oil importer. The official purchasing managers’ index (PMI) fell to 49.4 in November from 49.5 in October, staying below the 50-point level demarcating contraction from expansion. The U.S. Energy Information Administration on Wednesday reported a surprise build in U.S. crude oil and distillate fuel stocks last week, indicating weak demand. Natural gas prices may slip lower as it can move in range of 225-242.

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.

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