Commodity Morning Trading Guide | Globe Capital
01-Dec-2022
Commodity Morning Trading Guide

Bullions counter may remain on firm path as it touched a two-week high supported by a weaker dollar after U.S. Federal Reserve Chair Jerome Powell’s speech sparked expectations of smaller interest rate hikes ahead. Gold (Feb) can test 53500 while taking support near 53000 while silver (Mar) can move towards 66000 while taking support near 63000.

Report Overview

BULLIONS

Bullions counter may remain on firm path as it touched a two-week high supported by a weaker dollar after U.S. Federal Reserve Chair Jerome Powell’s speech sparked expectations of smaller interest rate hikes ahead. Gold (Feb) can test 53500 while taking support near 53000 while silver (Mar) can move towards 66000 while taking support near 63000. Powell in his speech on Wednesday also signalled a protracted economic adjustment to a world where borrowing costs will remain high, inflation comes down slowly, and the U.S. remains chronically short of workers. Investors’ attention now turns to the U.S. Labor Department’s non-farm payrolls data on Friday, which could influence Fed’s policy decisions.

BASE METALS

In base metal counter, Copper can move with upside bias as it can test 695 while taking support near 685.  Two newly expanded smelters in central and south China have recently produced a small amount of copper cathode. It is expected that the monthly output in China will increase month-on-month in December. On the demand side, the aided real estate policies and the relaxation of COVID-19 control measures failed to boost the processing industry. Zinc may move in on upside path as it can test 275 while taking support near 268. Aluminum can move on sideways path in range of 208-215. Orders in the aluminium processing sectors continued to fall in the traditional off-season. Although relaxed pandemic controls boosted market sentiment, relatively poor fundamentals will prevent aluminium prices from rising. Thus, the short-term aluminium prices may move rangebound.

ENERGY: Crude oil may continue to trade higher as lifted by signs of tighter supply and by optimism over a Chinese demand recovery. Overall it can move upside towards 6650 while taking support near 6400. The giant Chinese cities of Guangzhou and Chongqing announced an easing of COVID curbs on Wednesday, a day after demonstrators in southern Guangzhou clashed with police amid a string of protests against the world’s toughest coronavirus restrictions. U.S. crude oil stocks plunged by nearly 13 million barrels, the most since 2019, in the week ended Nov. 25, according to the Energy Information Administration. However, U.S. crude oil output surpassed 12 million barrels a day, the highest since before the onset of the coronavirus pandemic, the EIA said. Natural gas prices may move on mixed path in range of 560-600 on mixed fundamentals.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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