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

  • Bullions counter may trade on firm path as gold prices rose on Friday, hovering near record-high levels and set for a sixth successive weekly gain, as trade war concerns fuelled safe-haven buying ahead of the key U.S. payrolls report.

Report Overview

COMMODITY DAILY MARKET NEWS AND OUTLOOK

BULLIONS

  • Bullions counter may trade on firm path as gold prices rose on Friday, hovering near record-high levels and set for a sixth successive weekly gain, as trade war concerns fuelled safe-haven buying ahead of the key U.S. payrolls report.
  • Overall gold (Apr) can move in range of 84000-84800 while silver (Mar) also can move in range of 95000-96200.
  • A full-employment economy with solid growth and falling inflation will let the Federal Reserve continue cutting rates, though uncertainty about the impact of tariffs and other policy changes argues for a slower approach, Chicago Federal Reserve President Austan Goolsbee said on Thursday.
  • Gold is considered a safe investment during economic and geopolitical turmoil, but higher interest rates reduce the non-yielding asset’s appeal.

BASE METALS

  • In base metal counter, Copper prices can trade on positive path as it can move in range of 855-865. Base metals rose on Friday, with London copper set for its best week in more than four months on the back of a softer dollar and easing fears of a major 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 255-258.while lead may also move in range of 178-184.
  • The dollar index was set to decline 0.6% for the week, making greenback-priced commodities cheaper for holders of other currencies.
  • S. President Donald Trump suspended planned tariffs on Mexico and Canada earlier this week and imposed an additional 10% tariff on imports from China. Meanwhile, market focus was also on U.S. monthly payrolls figures due later in the day after Federal Reserve officials pointed to the large policy uncertainty around tariffs and other issues arising from the early days of the Trump administration.

 ENERGY

  • Crude oil may trade on weaker path as it can move in range of 6130-6250. Oil prices rose marginally in early Asian trade on Friday but were on track for a third straight week of decline, hurt by U.S. President Donald Trump’s renewed trade war on China and threats of tariff hikes on other countries.
  • Over the weekend, Trump announced a 10% tariff on Chinese imports as part of a broad plan to improve the U.S. trade balance but suspended plans to impose steep tariffs on Mexico and Canada.
  • Oil prices settled lower on Thursday after Trump repeated a pledge to raise U.S. oil production, unnerving traders a day after the country reported a much bigger-than-anticipated jump in crude stockpiles.
  • Natural gas may trade on firm path as it can move in range of 280-300.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclosure

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