Commodity Morning Trading Guide | Globe Capital
04-Oct-2022
Commodity Morning Trading Guide

Bullion counter can trade with upside momentum as softer dollar index and fall in U.S. 10-year Treasury yields lifted the prices higher. Gold can test 51400 while taking support near 51000 while Silver can move towards 63000 while taking support near 60000.

Report Overview

BULLIONS

Bullion counter can trade with upside momentum as softer dollar index and fall in U.S. 10-year Treasury yields lifted the prices higher. Gold can test 51400 while taking support near 51000 while Silver can move towards 63000 while taking support near 60000. U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September as new orders contracted amid aggressive interest rate increases from the Federal Reserve to cool demand and tame inflation. Federal Reserve Bank of New York President John Williams said on Monday that while there have been nascent signs of cooling inflation, underlying price pressures remain too high, which means the U.S. central bank must press forward to get inflation under control. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.34% to 942.89 tonnes on Monday from 939.70 tonnes on Friday.

BASE METALS

In base metal counter, Copper can trade with upside bias as it can move in range of 640-665. China spot premium for refined copper was at 605 yuan ($85.36) a tonne on Thursday, up from 50 yuan a tonne at the end of last year. Earlier this month, it hit 825 yuan, the highest since November 2021. The premium, which is paid on top of copper prices listed on exchanges, gives an indication of the supply/demand balance in China’s physical copper market. Refined copper demand in China rose 5% year-on-year in the third quarter, and is seen accelerating to a 9% year-on-year growth in October-December. Zinc may recover further as it can test 275 while taking support near 265 in MCX. Aluminum can also trade in green as it can test 200 in MCX.

ENERGY

Crude oil may trade in green as possibility that OPEC+ may agree to cut crude output when it meets on tomorrow are lifting the sentiments . Oil prices rallied on Monday on renewed concerns about supply tightness. There are expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, will cut output by more than 1 million barrels per day (bpd) at their first in-person meeting since 2020 on Wednesday. OPEC+ has boosted output this year after record cuts put in place in 2020 due to demand destruction caused by the COVID-19 pandemic. But in recent months, the organisation has failed to meet its planned output increases, missing in July by 2.9 million bpd. Overall it can move towards 7000 while taking support near 6700. Natural gas prices may remain on weaker path as it can move in range of 520-540 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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