- Bullions counter may trade on volatile path as investors awaited U.S. nonfarm payrolls data for indications on the Federal Reserve’s policy trajectory, though near-term pressure from commodity index adjustments continued to cap gains.
Commodity Morning Trading Guide
Report Overview
BULLIONS
- Bullions counter may trade on volatile path as investors awaited U.S. nonfarm payrolls data for indications on the Federal Reserve’s policy trajectory, though near-term pressure from commodity index adjustments continued to cap gains.
- The annual Bloomberg Commodity Index rebalancing, a periodic adjustment of commodity weightings to keep the index aligned with market conditions, begins this week. Overall Gold (Feb) can move in range of 136500-139000 while silver (Mar) can move in range of 243000-247000.
- Data showed U.S. jobless claims rose moderately last week, following reports on Wednesday that job openings fell more than expected in November and that private payroll growth undershot forecasts in December.
BASE METALS
- In base metal counter, Copper (Jan) prices can trade on volatile path as it can move in range of 1265-1295. China’s exports of refined copper surged to record levels last year as the world’s top buyer found itself in unusual competition with the U.S. for spare metal. The CME’s U.S. copper contract continues to command a sizeable premium over the international price traded on the London Metal Exchange (LME) as the market prices in the potential for U.S. tariffs.
- The premium for U.S. delivery is sucking metal out of the global supply chain, with the ripple effect now emptying China’s bonded warehouse zones. China’s outbound shipments jumped to 143,000 metric tons in November, bringing the year-to-date total to 698,500 tons, already an annual record.
- Aluminum (Jan) prices can trade on upside path as it may move in range of 310-315.while Zinc (Jan) may move on volatile path as it may trade in range of 306-313.
ENERGY
- Crude oil (Jan) may trade on firm path as it can move in range of 5150-5300. Oil prices climbed over 3% on Thursday after two straight days of declines, settling at a two-week high as investors assessed developments in Venezuela and worried about supplies from Russia, Iraq and Iran.
- Foreign embassies in Venezuela are beginning to arrange visits for next week that will include representatives for U.S. and European oil companies, two sources told Reuters, following Washington’s announcement of a $2 billion oil deal and the supply of U.S. goods to the South American country.
- After capturing Venezuelan President Nicolas Maduro in a military raid on Caracas on Saturday, the U.S. has been escalating its blockade of vessels that are under sanctions and traveling to and from the South American country, a member of the Organization of the Petroleum Exporting Countries.
- Natural gas (Jan) may trade on weaker path as it can move in range of 300-315.
Disclosure
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