SMC’s commodity updates for Sept 27 | commodity outlook for the day | IndiaNotes.com
Market Update (Bullions)
Bullion counter may continue to remain sideways as movement of greenback, geopolitical tensions and US durable goods order data to give further direction to the prices. Meanwhile movement of local currency rupee can give further direction to the prices. Gold can move in range of 29700-29950 while silver can move in range of 39400-40000 in near term. Gold prices were steady early Wednesday after falling over 1 per cent in the previous session on hawkish comments from US Federal Reserve Chair Janet Yellen. The Fed needs to continue gradual rate hikes despite broad uncertainty about the path of inflation, Yellen said on Tuesday in remarks that acknowledged the central bank’s struggles to forecast one of its key policy objectives. President Donald Trump warned North Korea on Tuesday that any US military option would be “devastating” for Pyongyang, but said the use of force was not Washington’s first option to deal with the country’s ballistic and nuclear weapons program.
Market Update (Base Metals)
Base metals complex may trade on positive path as US pending home sales data to further give direction to the prices. Copper may trade in range of 420-427. Aluminum can move in the range of 136-139 in MCX. Nickel can move in range of 670-690. Lead can hover in the range of 159-163. Zinc may move in range of 203-206. London copper hovered near its lowest since mid-August on Thursday, subdued by a stronger dollar and ongoing concerns over flagging economic growth in China. Zinc stocks in LME-registered warehouses fell a further 1,600 tonnes on Monday, exchange data showed, and are down 39 per cent this year. Another 20,350 tonnes of zinc warrants were cancelled, meaning metal had been earmarked for delivery and was no longer available to the wider market. The Asian Development Bank raised its outlook for China’s economic growth this year on the back of strong domestic consumption, an export recovery and solid growth in services.
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