BULLIONS
Bullions counter may witness some profit booking at higher levels. Yellow metal hovered above key $2,400 level touched earlier this week, supported by safe-haven buying and the prospect of interest rate cuts from the U.S. Federal Reserve later this year. Overall gold can move in range of 73500-74200 while silver also can move in range of 93000-95500. Recent data suggested that U.S. inflation resumed its downward trend, but several Fed policymakers remained cautious on cutting rates too soon and ruled out the need for a hike. Fed policymakers said the U.S. central bank should wait several more months to ensure that inflation really is back on track to its 2% target before cutting interest rates. The Shanghai Futures Exchange will raise the trading limit and margin requirements for gold and silver futures contracts from May 23.
BASE METALS
In base metal counter, Copper prices can trade on subdued path as it can move range of 922-935. Copper prices trended lower on Wednesday on a steady U.S. dollar, softening demand and higher inventories in top consumer China. The dollar was steady against a handful of peers on Wednesday, as the market assessed calls for patience from Federal Reserve officials and awaited the publication of Fed minutes for more insight on the central bank’s interest rate path. Also weighing on copper was weak physical demand in top consumer China after prices hit record highs and mounting inventories. Copper warehouse stocks on SHFE stood at 291,020 tons last Friday, more than four times higher than that in the beginning of February. Aluminium may move sideways in range of 236-250.
ENERGY
Crude oil may trade in lower path as it may move in range of 6400-6600. Oil prices fell for a third straight session on Wednesday on expectations the Federal Reserve could keep U.S. interest rates higher for longer due to sustained inflation, potentially impacting fuel use in the world’s largest oil consumer. Fed policymakers said on Tuesday the U.S. central bank should wait several more months to ensure that inflation really is back on track to its 2% target before cutting interest rates. U.S. crude oil and gasoline inventories rose last week, while distillates fell, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Ahead of this weekend’s Memorial Day holiday, which kicks off the U.S. peak summer driving season, retail gasoline prices fell for the fourth consecutive week. U.S. prices of diesel, a key refined product for both the industrial sector and transport, have also slipped. Investors are awaiting minutes from the Fed’s last policy meeting and weekly U.S. oil inventory data from the U.S. Energy Information Administration (EIA) due later on Wednesday. Natural gas prices trade on negative path as it may move in range of 214-235.

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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