- Bullions counter may trade on volatile path as yellow metal prices firmed on Friday and were en route to their biggest weekly gain since January, helped by weaker oil prices, while investors awaited key U.S. nonfarm payrolls data for clues on the interest rate outlook. Market participants braced for the U.S. Labor Department’s nonfarm payrolls report for July, scheduled for release at 7 pm today.
Commodity Morning Trading Guide
MORNING RECOMMENDATION
BULLIONS
- Bullions counter may trade on volatile path as yellow metal prices firmed on Friday and were en route to their biggest weekly gain since January, helped by weaker oil prices, while investors awaited key U.S. nonfarm payrolls data for clues on the interest rate outlook. Market participants braced for the U.S. Labor Department’s nonfarm payrolls report for July, scheduled for release at 7 pm today.
- Gold (Oct) can move in range of 148000-150000 while silver (Sep) can move in range of 224000-229000.
- U.S. President Donald Trump told reporters that he believed the war with Iran would be over soon and said the armed forces were experiencing issues with supplies of some weapons.
BASE METALS
- In base metal counter, Copper prices can trade on firm path as it can move in range of 1380-1390. Copper advanced to the highest in two months, reaching $14,000 a ton in London, as traders monitored ballooning volumes held in the US ahead of an expected decision on an import tariff by President Donald Trump.
- More than 200,000 tons of copper arrived at US ports in July, the largest monthly volume in IHS Markit shipping data dating back to 2014. That’s added to a huge hoard in American warehouses and ports, and sapped availability for buyers elsewhere in the world.
- Aluminum prices can trade on upper path as it may move in range of 347-356. The aluminium market is betting that increased exports from China and Indonesia can offset the loss of production in the Gulf region due to the Iran war.
ENERGY
- Crude oil may open on firm note as it can move in range of 7300-7550. Oil prices extended their rally on Friday August 7 after reports emerged that Iran had struck “hostile targets” in the Strait of Hormuz, deepening concerns over the security of one of the world’s most critical energy corridors.
- Brent crude climbed above $83 a barrel, adding to an almost 4% surge in the previous session, while West Texas Intermediate traded near $78. Markets had briefly pared some of their earlier losses this week as traders grew hopeful that Hormuz might fully reopen and allow energy flows from the Arabian Gulf to resume. That optimism faded, however, once details emerged of a proposed agreement between Iran and Oman. Under the plan, Tehran intended to bar American and Israeli ships from using the strait altogether, while also demanding compensation from other “hostile” countries wishing to pass through it.
- Natural gas may trade with mixed bias as it can move in range of 245-260.
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