Commodity Morning Trading Guide | Globe Capital
07-Nov-2022
Commodity Morning Trading Guide

Bullions counter may continue to trade on upside bias as weaker dollar index continue to assist the prices higher. Gold can test 51200 while taking support near 50800 while Silver can test 61500 while taking support near 59500. Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting. Investors will now focus on the U.S. inflation data due later this week.      

Report Overview

BULLIONS

Bullions counter may continue to trade on upside bias as weaker dollar index continue to assist the prices higher. Gold can test 51200 while taking support near 50800 while Silver can test 61500 while taking support near 59500. Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting. Investors will now focus on the U.S. inflation data due later this week. The data is likely to shed some light on Fed’s rate-hike move in the upcoming December meet. On the physical front, World Gold Council said in a note dated Friday, a stable local gold price, weak RMB and economic uncertainty supported gold sales in regions such as Beijing and Shanghai in October.

BASE METALS

In base metal counter, Copper can trade with upside path as it can move towards 685 while taking support near 670. On the demand side, the impact of the pandemic outbreaks across China and the high copper prices weakened the downstream demand. In terms of spot, the tight market supply and the wide spread between the front-month and next-month contracts failed to prevent the spot premiums from falling, which showed that consumption was extremely poor. Zinc may open higher as it can move in range of 260-270. On the fundamentals front, the overseas enterprises were still cutting the production, and the LME inventory fell grudually amid resilient consumption. It should be pointed out that last week the cancelled warrants in LME zinc inventory dropped sharply. It might be a sign that the transfer of zinc ingots to Europe was cancelled or it just implied that the consumption in Europe encountered a further decline. Aluminum can move sideways in range of 200-206.

ENERGY

Crude oil may remain on upbeat note as it can test 7600 while taking support near 7460. Oil prices are underpinned by expectations of tighter supplies as the European Union’s embargo on Russia’s seaborne crude exports will start on Dec. 5 while refineries worldwide are ramping up output to meet strong diesel demand. Russia has become India’s top oil supplier in October, surpassing traditional sellers Saudi Arabia and Iraq, according to data from energy cargo tracker Vortexa. Natural gas prices trade on higher side and move towards 590 in MCX which is supported by estimates of lower nuclear power output in France and forecasts of upcoming colder weather after a very warm start to the heating season.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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