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

Bullion counter may continue to extend yesterday losses as rising greenback and jump in US treasury yields prompted fear of aggressive rate hike by US kept the prices under pressure. Gold (Oct) can dip lower towards 50000 while taking resistance near 50400 in domestic markets. Silver (Dec) can plunge towards 52000 while taking resistance near 54000.

Report Overview

BULLIONS

Bullion counter may continue to extend yesterday losses as rising greenback and jump in US treasury yields prompted fear of aggressive rate hike by US kept the prices under pressure. Gold (Oct) can dip lower towards 50000 while taking resistance near 50400 in domestic markets. Silver (Dec) can plunge towards 52000 while taking resistance near 54000. Benchmark U.S. Treasury yields rose to their highest level since June 16 on expectations the Fed will keep hiking interest rates to tame soaring prices. Higher yields raise the opportunity cost of holding non-yielding gold. Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.21% to 971.05 tonnes on Tuesday from 973.08 tonnes on Friday.

BASE METALS

Base metal counter may trade in red on profit booking at higher levels. Copper can dip towards 620 while taking resistance near 640. It is reported that in July, the world’s two largest copper producers, Chile and Peru, both experienced a year-on-year decline in copper production due to declining ore grades and frequent strikes, but copper supply in China is expected to continue to pick up. Yesterday US services sector picked up for the second month in a row in August amid growing orders and strong employment, while the supply bottlenecks and price pressures eased, reinforcing the view that the economy is not in recession and the US Fed would adhere to the rate hike path. Zinc may dip towards 275 while taking resistance near 290 in MCX. Aluminum can plunge towards 195 in MCX.

ENERGY

Crude oil may remain downbeat on concerns of a global economic recession and lower fuel demand growth as it can dip towards 6700 in MCX while taking resistance near 7000. Oil pared strong gains made on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and their allies, a group known as OPEC+, decided to cut output by 100,000 barrels per day in October. China’s stringent zero-COVID policy has kept cities such as Chengdu, with 21.2 million people, under lockdown, curbing people movement and oil demand at the world’s second-largest consumer. Natural gas prices can dip lower as it can test 610 while taking resistance near 660 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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