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

Bullions counter may remain volatile path as supported by a pullback in the dollar and U.S. bond yields. Gold (Feb) can move in range of 53800-54200 while silver (Mar) can move towards 65400-66800. Most investors expect the Fed to deliver a 50-basis point rate hike at its final meeting of 2022 scheduled on Dec. 13-14.

Report Overview

BULLIONS

Bullions counter may remain volatile path as supported by a pullback in the dollar and U.S. bond yields. Gold (Feb) can move in range of 53800-54200 while silver (Mar) can move towards 65400-66800. Most investors expect the Fed to deliver a 50-basis point rate hike at its final meeting of 2022 scheduled on Dec. 13-14. Market participants also await the November Consumer Price Index (CPI) report due on Dec. 13. Gold is traditionally known as an inflation hedge and safe investment during economic and geopolitical turmoil. However, higher interest rates tend to increase the opportunity cost of holding gold as the metal yields no interest.

BASE METALS

In base metal counter, Copper can move on sideways path as it can move in range of 697-708. LME copper inventory gained 2,100 mt to 88,475 mt as of December 7. In China, the inventory in Guangdong kept falling with limited arrivals of goods. In the spot market, leading traders in the market took the led to dump their goods for cash as the delivery of SHFE front-month copper contract approached. Zinc may move on upside path as it can test 285 while taking support near 275. Aluminum can trade on mixed path as it can move in range of 210-218.  On the whole, aluminium price has been high recently. On the demand side, the spot market showed little demand for spot aluminium ingot and billet.

ENERGY: Crude oil may trade on weaker path but short covering at lower level can be seen after steep fall. Overall it can move in range of 5950-6150. Crude oil dipped to their lowest level this year as U.S. production and gasoline inventories ticked up at the same time concerns grew that economic slowdowns would weaken fuel demand. U.S. crude production rose to 12.2 million barrels per day last week, its highest level since August, the Energy Information Administration said on Wednesday. While U.S. crude stocks fell last week, gasoline and distillate inventories surged, adding to concerns about easing demand. Natural gas prices can witness further buying at lower levels as it can test 520 while taking support near 470.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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