Commodity Morning Trading Guide | Globe Capital
11-Nov-2022
Commodity Morning Trading Guide

Bullions counter may trade on higher path as U.S. CPI data pointing to slowing inflation boosted hopes that the Federal Reserve would slow its aggressive rate hikes. Gold can move in range of 52000-52500 while Silver can move in range of 61400-62400.  

Report Overview

BULLIONS

Bullions counter may trade on higher path as U.S. CPI data pointing to slowing inflation boosted hopes that the Federal Reserve would slow its aggressive rate hikes. Gold can move in range of 52000-52500 while Silver can move in range of 61400-62400. U.S. consumer prices rose less than expected in October, indicating that inflation was slowing, which raised hopes that the Fed will begin scaling back its hefty rate hikes. Gold is considered a hedge against inflation, but rising interest rates increase the opportunity cost of holding non-yielding bullion. The biggest challenge facing central bankers now is bringing inflation down, International Monetary Fund Managing Director Kristalina Georgieva said on Thursday, as her deputy warned of the growing risk of economic fragmentation.

BASE METALS

In base metal counter, Copper can trade with upside path as it can move towards 700 while taking support near 685. On the fundamentals, LME copper inventories fell 950 mt to 80,025 mt on November 10. In China, the inventory in Guangdong fell sharply again, heading towards the year-to-date low level. Zinc may open higher as it can move in range of 260-270. Aluminum can move with upside path as it can move in range of 200-206. On the supply side, the operating capacity in Sichuan province has been slightly restored, but is unlikely to fully recover by the end of the year due to tight hydropower supply in the dry season. On the demand side, domestic aluminium downstream consumption is still weak.

ENERGY

Crude oil may witness some bounce back as fears of a U.S. recession eased but were on track for weekly declines of more than 4% after a jump in COVID-19 cases in top oil importer China raised the spectre of weaker fuel demand. It can recover towards 7150 while taking support near 6950. Price gains were capped by China continuing to pose a risk on the demand side, with COVID-19 cases on the rise in the manufacturing hub of Guangzhou, where authorities on Thursday urged residents to work from home. Hopes that China was going to ease its zero COVID policy pumped up the oil market last week, but comments from health officials this week made it clear they would continue to strictly curb any outbreaks. Natural gas prices trade on volatile path in range of 480-515.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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