Commodity Morning Trading Guide | Globe Capital Market LTD.
06-Feb-2025
Commodity Morning Trading Guide

Bullions counter may trade on firm path as gold prices hit a record high on Wednesday, bolstered by fears of a new trade war between the United States and China after Beijing slapped tariffs on U.S. imports in a response to new U.S. duties on Chinese goods.

Report Overview

BULLIONS

  • Bullions counter may trade on firm path as gold prices edged higher on Thursday, hovering near record highs hit in the previous session, as tensions in the China-U.S. trade war lifted safe-haven demand, while investors awaited the U.S. jobs data for clues on the future direction of interest rates.
  • Overall gold (Apr) can move in range of 84200-84800 while silver (Mar) also can move in range of 94800-96300.
  • China had also imposed duties on U.S. goods in response to U.S. tariffs, escalating the trade war between the two countries.
  • Federal Reserve officials pointed to the large policy uncertainty around tariffs and other issues arising from the early days of Trump’s administration as among the top challenges in figuring out where to take U.S. monetary policy in the months ahead.

BASE METALS

  • In base metal counter, Copper prices can trade on positive path as it can move in range of 850-865. Prices of base metals rose on Thursday as the dollar retreated, while investors looked for any developments on the latest trade war between the United States and top metals consumer China.
  • Aluminum prices can trade on mixed path as it may move in range of 250-258.while lead may also move in range of 177-182.
  • Earlier this week, China imposed tit-for-tat tariffs on some U.S. imports, escalating the trade tension between the world’s two top economies, while President Donald Trump gave temporary tariff exemptions to Mexico and Canada.
  • Attention will also be on China to see if the country unveils more stimulus in its National People’s Congress meeting in March, given the tariff war and concerns about slow demand.

 ENERGY

  • Crude oil may trade on volatile path as it can move in range of 6200-6360. Oil prices ticked up in early Asian trading on Thursday, steadying from a sell-off the previous day after Saudi Arabia’s state oil company sharply raised March oil prices.
  • Saudi Aramco, the world’s leading oil exporter, on Wednesday announced it would sharply increase prices to buyers in Asia for March delivery amid rising demand from China and India as U.S. sanctions disrupt Russian supply.
  • Oil prices had fallen more than 2% on Wednesday as a large build in U.S. crude and gasoline stockpiles signalled weaker demand, and as investors weighed the implications of a new round of U.S.-China trade tariffs, including duties on energy products.
  • Natural gas may trade on firm path as it can move in range of 280-300.
  • So far, the 10% tariffs the U.S. imposed on China on Tuesday fell short of President Donald Trump’s campaign threats, and China’s tit-for-tat measures were seen as limited in nature.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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