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

Bullions counter may remain on mixed path as US CPI data later today to give further direction to the prices.

Report Overview


Bullions counter may remain on mixed path as US CPI data later today to give further direction to the prices. Gold can move in range of 62000-62300 while silver also can move in range of 71500-72500. Gold eked out gains on Thursday, as the dollar extended its retreat ahead of a U.S. inflation report later in the day that could offer more clarity on the Federal Reserve’s monetary policy outlook this year. Traders are betting on 140 basis points (bps) of interest rate cuts by the U.S. central bank this year and a 67% chance they begin as soon as March. Earlier this week, a New York Fed report said consumers expect a decline in inflation while Fed Governor Michelle Bowman stated that the U.S. central bank’s monetary policy seems “sufficiently restrictive”.


In base metal counter, Copper can move in range of 715-722. Prices of non-ferrous metals largely rose on Thursday, as a softer dollar and China’s move to support the yuan boosted the purchasing power of buyers in the world’s top metals consumer. The dollar index edged down and was on track for a second daily loss, but the fall was minimal as traders awaited U.S. inflation data to see whether bets on rate cuts were justified. A softer dollar makes greenback-priced metals cheaper for holders of other currencies, while China also moved to defend the yuan on Thursday. Aluminium may trade in range of 200-205.


Crude oil may witness lower level buying as it may move in range of 5900-6050. Oil prices ticked higher as markets measured rising tensions in the Middle East against a surprise build in U.S. crude stockpiles that pushed oil benchmarks down about 80 cents in the previous session. U.S. crude inventories increased by 1.3 million barrels in the week ended on Jan. 5 to 432.4 million barrels, the EIA said on Wednesday, against analyst expectations for a 700,000-barrel draw. On Wednesday, Yemen-based Houthis mounted their largest attack yet on commercial shipping lanes in the Red Sea. The U.S. and Britain hinted they would take further measures if the attacks continued, and the UN Security Council passed a resolution demanding an immediate end to the strikes. Israeli strikes in southern and central Gaza also intensified on Wednesday. China’s customs administration will release December trade data on Friday, giving a full-year picture of overall demand in the world’s largest oil buyer. Analysts expect the data to show that China’s goods imports rose 0.3% last month, after dropping 0.6% in November. Natural gas prices may trade weaker path as it may move in range of 240-260.
























































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