Commodity Morning Trading Guide | Globe Capital Market LTD.
Commodity Morning Trading Guide

Bullions counter may trade on lower path as the initial safe-haven demand from the Middle East conflict faded, while investors awaited comments from U.S. Federal Reserve Chair Jerome Powell .

Report Overview


Bullions counter may trade on lower path as the initial safe-haven demand from the Middle East conflict faded, while investors awaited comments from U.S. Federal Reserve Chair Jerome Powell for more clues on interest rates. Gold can move in range of 59700-60100 while silver also can move in range of 69500-70700. A slew of Fed officials who spoke this week maintained a balanced tone on the U.S. central bank’s next decision, but noted that they would focus on economic data and the impact of higher long-term bond yields. Powell did not comment on monetary policy or the economic outlook in prepared remarks at a conference on Wednesday. He is scheduled to speak at another conference later in the day. Futures point to a roughly 14% chance of another hike by January, but are pricing in an 18% chance that rate cuts could come as early as March, according to the CME FedWatch Tool.


In base metal counter, Copper can move on weaker path as it can move in range of 695-710. Despite supply disruptions, a 23.7% surge in China’s copper imports was observed in October. This rise was influenced by low stocks and consistent demand in various sectors. However, the market saw a decrease in copper inventories on the Shanghai Futures Exchange, albeit subsequent 11.2% increases, offering a slight cushion post a significant drop. On the other hand, the market remains vigilant about China’s demand outlook amid PMI data showing unexpected contractions in the manufacturing sector. Beijing’s plans to inject CNY 1 trillion in additional debt to stimulate manufacturing and infrastructure construction further impacted market sentiments. Aluminum can move in range of 205-210.


Crude oil may trade on mixed path as it may move in range of 6150-6450. Oil prices edged up on Thursday as markets shrugged off deflationary indicators in China and looked for further clues on the status of demand from the world’s two biggest oil consumers. The upticks come a day after both benchmarks fell more than 2% to their lowest since mid-July as worry over potential supply disruptions in the Middle East eased and concern over U.S. and Chinese demand intensified. China inflation data released on Thursday showed that October CPI fell 0.2% year on year, while PPI data fell 2.6% year on year. On the plus side for oil demand, China’s central bank governor, Pan Gongsheng, said the country is expected to achieve its annual growth target of 5% for this year. For the United States, inventory data may indicate a weakening in demand. U.S. crude oil inventories increased by 11.9 million barrels over the week to Nov. 3, sources said, citing American Petroleum Institute figures. Natural gas prices may tad further lower as it can move in range of 250-270.


































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