Commodity Morning Trading Guide | Globe Capital Market LTD.
08-Nov-2023
Commodity Morning Trading Guide

Bullions counter may trade on mixed path as investors looked for more clarity on interest rates from the Federal Reserve chief after mixed messages from a host of U.S. central bank policymakers.

Report Overview

BULLIONS

Bullions counter may trade on mixed path as investors looked for more clarity on interest rates from the Federal Reserve chief after mixed messages from a host of U.S. central bank policymakers. Gold can move in range of 60250-60600 while silver also can move in range of 70300-70800. A slew of Fed officials on Tuesday maintained a balanced tone on the central bank’s next decision, but noted they would focus on more economic data and the impact of higher long-term bond yields. Chicago Fed President Austan Goolsbee said the central bank had made significant inroads in its battle to bring inflation down, while Fed Governor Michelle Bowman repeated her view that the central bank would likely need to raise short-term rates again. Investors now look forward to comments from Fed Chair Jerome Powell, who is set to speak on Wednesday and Thursday.

BASE METALS

In base metal counter, Copper can move on firm path as it can move in range of 707-712. China’s copper imports surged by 23.7% in October, driven by low stocks and robust demand, particularly in construction, transport, and power sectors. Notably, copper inventories in China were at a 13-month low as of October 27, down 85.6% from their peak in March. However, copper inventories at the Shanghai Futures Exchange rose by 11.2% to 40,516 tonnes during the week ending November 3, providing a buffer following a prior period’s significant decline. Market focus remained on China’s demand outlook, as Beijing plans to issue CNY 1 trillion in additional debt to stimulate manufacturing and infrastructure construction. Aluminum can move in range of 206-210.

ENERGY

Crude oil may trade on negative path as it may move in range of 6300-6600. Oil prices stuttered on Wednesday after sliding to their lowest in over three months in the previous session, weighed down by concerns over waning demand in the world’s top oil consumers, the United States and China. U.S. crude oil stocks rose by almost 12 million barrels last week, market sources said late Tuesday, citing American Petroleum Institute figures. Crude oil production in the United States this year will rise by slightly less than previously expected while demand will fall, the EIA said on Tuesday. The EIA now expects total petroleum consumption in the country to fall by 300,000 bpd this year, reversing its earlier forecast of a 100,000 bpd increase. Crude oil imports by the world’s second-biggest economy in October showed robust growth but its total exports of goods and services contracted at a quicker pace than expected, adding to fears of lower global energy demand. Natural gas prices may tad further lower as it can move in range of 255-275.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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