Commodity Morning Trading Guide | Globe Capital
10-Jan-2023
Commodity Morning Trading Guide

Bullions counter can witness some profit booking at higher levels with cautious traders largely focusing on Federal Reserve Chair Jerome Powell’s speech for insights into the U.S. central bank’s rate-hike trajectory. Gold can move in range of 55600-56000 while Silver also can move in range of 67500-69500.

Report Overview

BULLIONS

Bullions counter can witness some profit booking at higher levels with cautious traders largely focusing on Federal Reserve Chair Jerome Powell’s speech for insights into the U.S. central bank’s rate-hike trajectory. Gold can move in range of 55600-56000 while Silver also can move in range of 67500-69500. Investors’ focus is on Powell’s speech at a central bank conference later in the day. Market participants will also scan the U.S. consumer price index (CPI) data due on Thursday for further clues on Fed’s policy stance. San Francisco Federal Reserve President Mary Daly on Monday said that either a 50 basis point or a 25 bps rate hike was a possibility in the upcoming Fed meeting, while Atlanta Fed President Raphael Bostic commented that it was appropriate to be ‘more cautious’ in calibrating rates, with rates possibly staying higher into 2024.

BASE METALS

In base metal counter, Copper can witness some profit booking at higher levels as it can move in range of 743-756. On one hand, the increase in the number of COVID-19 patients in China forced factories around the country to start an early Chinese New Year holiday, pushing up the inventories. On the other hand, smelters ramped up the shipments to east China and south China to dump their in-plant inventories approaching the Chinese New Year. Most processing enterprises plan to take their Chinese New Year holiday next week, hence the overall consumption will continue to weaken. Copper prices that will be dominated by macro factors in the near future are expected to remain range bound. Zinc may move on firm path as it can move in range of 275-285. Aluminum can trade sideways in range of 207-215.

ENERGY: Crude oil may trade in red as it can test 6000 while taking resistance near 6180 in MCX. Oil prices came under pressure as trader’s awaited clarity on the Federal Reserve’s plans for rate hikes to gauge the impact on the economy and fuel demand. Fed policymakers say fresh inflation data out later this week will help them decide whether they can slow the pace of interest rate hikes at their upcoming meeting, to just a quarter point increases instead of the larger jumps they used for most of 2022. China also issued a second batch of 2023 crude import quotas, raising the total for this year by 20% from the same time last year. Natural gas prices can trade on volatile path as it can move in range of 310-335.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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