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

Bullion counter may continue to remain in red as surge in dollar index amid fear of faster rise in interest rates from Federal Reserve Chair Jerome Powell’s to tame rising inflation is keeping prices under pressure. Gold (Oct) can slip lower towards 50100 while facing resistance near 50500 in domestic markets. Silver (Dec) can tumble towards 51500 while taking resistance near 53000.  

Report Overview

BULLIONS

Bullion counter may continue to remain in red as surge in dollar index amid fear of faster rise in interest rates from Federal Reserve Chair Jerome Powell’s to tame rising inflation is keeping prices under pressure. Gold (Oct) can slip lower towards 50100 while facing resistance near 50500 in domestic markets. Silver (Dec) can tumble towards 51500 while taking resistance near 53000. Meanwhile, Cleveland Fed President Loretta Mester said the U.S. central bank would need to boost rates somewhat above 4% by early next year and then hold them there to bring inflation back down to its goal. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.3% to 973.37 tonnes on Wednesday.

BASE METALS

Copper can trade on lower path as it can test 635 in MCX on China slowdown concerns  China’s factory activity extended declines in August due to new COVID infections, the worst heat wave in decades and an embattled property sector that weighed on production, suggesting the economy will struggle to sustain momentum. Zinc may head lower towards 300 while taking resistance near 315 in MCX. Aluminum can dip lower towards 202 in MCX. On the supply side, aluminium factories resumed their production more quickly than expected, and inventory pressure re-appeared on concentrated arrivals after the Labour Day holiday. On the demand side, some downstream companies posted less orders, and downstream operating rates dropped during the holiday.

ENERGY

Crude oil may remain in red as it can test 7000 in MCX while taking resistance near 7300. Recent market volatility has followed concerns about inadequate supply in the months after Russia’s invasion of Ukraine and as OPEC struggled to increase output. Production in both OPEC and the United States has risen to its highest level since the early days of the coronavirus pandemic.  Natural gas prices can dip lower as it can test 710 while taking resistance near 740 in MCX. Russia shut down natural gas flows through the Nord Stream 1 pipeline on Wednesday, stoking Europe’s energy crisis as it hits back against Western sanctions over the Ukraine war. State-owned energy giant Gazprom warned earlier in August that the pipeline, which carries gas from Russia to Germany, would close for planned maintenance works for three days.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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