IGI Logo

Bullion – Spot Gold rebounded on Wednesday, snapping a 3-day losing streak and rising over 1.2% to closed near $3,980/ Oz as safehaven demand strengthened amid mixed market sentiment. The gains came despite robust U.S. data, with the ADP report showing private payrolls rising by 42k in October versus expectations of 25,000, reinforcing the view that the Fed may delay further rate cuts. However, the ISM Services PMI also improved to 52.4, with the Prices Paid component surging to its highest since October 2022 at 70, signaling rising inflationary pressure. Following the data, money markets trimmed the odds of a December rate cut to 62% from 68%. Fed Governor Miran reaffirmed the need for deeper rate cuts. Meanwhile, silver advanced 1.8% to above $48, supported by firm industrial demand. Today, gold held steady near $3,980, as investors weighed U.S. jobs data and interest rate outlook. Persistent risk-off sentiment and inflation concerns may support prices, though firm economic data may limit upside.

Crude Oil – WTI crude edged lower on Wednesday, weighed down by a much bigger-than-expected oil inventory build of 5.2 million barrels last week. However, sharp downside was limited by a significant drawdown of 4.7 million barrels in gasoline stocks, bringing inventories to their lowest level in three years. Oil prices have been under pressure due to persistent oversupply concerns. Today, oil prices are holding declines and trades below $60/bbl as Saudi Arabia’s decision to slash the official selling price (OSP) for crude oil destined for Asia in December reflects a well-supplied regional market and intent to defend its market share.

Natural Gas – Nymex Henry Hub gas futures slipped nearly 3% to $4.2/mmBtu due to a sharp increase in US production, ample inventories, and mixed weather projections for mid-November.

Base metals – Base metals traded mixed on Wednesday, with copper holding firm near $10,700 per ton, supported by persistent supply constraints and steady dip-buying from Chinese consumers. Broader sentiment across the complex remained cautious as investors weighed stretched valuations, a stronger US dollar, and uncertainty surrounding future Federal Reserve policy moves. Weak Chinese manufacturing data added to demand concerns, limiting upside momentum. Despite the recent pullback from record highs driven by optimism over improved US–China trade relations and tight supply, production curbs by major miners such as Glencore and Anglo American continue to underpin the market. The reopening of a key African port has eased some logistical strain, yet volatility persists ahead of key Chinese trade and credit data due next week. Base metals are expected to remain range-bound, with copper facing near-term headwinds from a firm dollar but supported by ongoing structural supply tightness.

Please refer disclaimer at https://www.kotaksecurities.com/disclaimer

SEBI Registration No. INZ000200137