- Bullions counter may trade on mixed path as gold prices eased on Tuesday, trading below a two-week high, with investors awaiting the U.S. Federal Reserve’s June meeting minutes for insight into new Chair Kevin Warsh’s monetary policy direction.
Commodity Morning Trading Guide
MORNING RECOMMENDATION
BULLIONS
- Bullions counter may trade on mixed path as gold prices eased on Tuesday, trading below a two-week high, with investors awaiting the U.S. Federal Reserve’s June meeting minutes for insight into new Chair Kevin Warsh’s monetary policy direction.
- Gold (Aug) can move in range of 145200-146500 while silver (Sep) can move in range of 230000-236000.
- Gold price action looks like a little bit of a continuation of last week, some basing out, forming a support level, obviously waiting for a little bit of direction from the Fed minutes to get a bit more sense around what the Fed’s thinking is on the short term interest rate policy.
- The Federal Open Market Committee’s June 16-17 meeting minutes will be released on Wednesday. Warsh’s first meeting as chair removed references to what sort of rate adjustments the Fed might make, arguing that it can make a central bank less nimble in responding to new economic developments.
BASE METALS
- In base metal counter, Copper prices can trade on volatile path as it can move in range of 1275-1290. The global copper market to run a surplus of 490,000 tonnes this year, up from its prior estimate of 380,000 tonnes, after cutting its global refined copper demand growth forecast to 1.6% year-on-year from 2%.
- Democratic Republic of Congo does not expect significant disruptions to copper and cobalt production this year due to chemical supply constraints stemming from conflict in the Middle East.
- Aluminum prices can trade on mixed path as it may move in range of 327-336.
ENERGY
- Crude oil may trade sideways as it can move in range of 6500-6700. Oil prices edged higher on Tuesday, though gains were capped as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects.
- The steps towards recovery in supply have eased the immediate risk premium, but the market remains wary of putting too much faith in the stability of the current truce given the on again-off again nature of U.S.-Iran relations.
- On Monday night, Iran’s Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz, Axios reported, citing two U.S. officials. The commercial ships suffered significant damage but had no casualties, the report said.
- Natural gas may trade on lower path as it can move in range of 304-315.
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