Commodity Morning Trading Guide | Globe Capital
08-Aug-2022
Commodity Morning Trading Guide

  Bullion counter is expected to witness profit booking at higher levels as strong job data in US can prompt Federal Reserve to hike interest rates at faster pace.  

Report Overview

BULLIONS

Bullion counter is expected to witness profit booking at higher levels as strong job data in US can prompt Federal Reserve to hike interest rates at faster pace. Meanwhile sharp bounce back in greenback can also keep upside capped. According to Fed Governor Michelle Bowman “The Fed should consider more 75bp interest rate hikes at coming meetings in order to bring inflation back down to the central bank’s goal” Meanwhile, holdings of SPDR Gold Trust, the world’s  largest gold-backed exchange-traded fund, fell 0.12% to 999.16 tonnes on Friday, its lowest since mid-Jan.

BASE METALS

Base metals can also tad slightly lower as weak industrial activity readings from across the globe drove concerns over sluggish demand. Zinc price can dip lower towards 304-305. Focus now turns to key U.S. CPI inflation data, in this week, for more cues on monetary policy. A stronger-than-expected reading is likely to force the Fed into hiking lending rates sharply- a move that will be detrimental to metal prices. China Copper and copper products imported into the country totalled 463,693.8 tonnes in July, compared with 424,280.03 tonnes last year. China’s total trade surplus hit an all-time high of US$101.26 billion in July, compared with US$97.94 billion in June. Exports grew by 18 per cent last month from a year earlier to US$333 billion, compared to a 17.9 per cent growth in June.

ENERGY

Crude oil can continue to remain downbeat as recession fears is hurting demand outlook. Crude oil prices can face resistance near 7250 levels. According to China customs data showed “China, the world’s top crude importer, imported 8.79 million barrels per day (bpd) of crude in July, up from a four-year low in June, but still 9.5% lower than a year ago”. Russian crude and oil products exports continued to flow despite an impending embargo from the European Union that will take effect on Dec. 5.Natural gas prices can dip lower as it can test 620 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

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