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

Bullions counter may continue its upside momentum as  the dollar edged lower

Report Overview


Bullions counter may continue its upside momentum as  the dollar edged lower after several U.S. Federal Reserve officials suggested that the recent surge in Treasury yields might make further rate hikes less necessary. Yellow metal can move in range of 57300-57800 while silver also can move in range of 68500-69800. The dollar dipped to a nearly two-week trough against a basket of currencies, tracking a slide in U.S. Treasury yields that have retreated from their 2007 highs scaled last week. Minneapolis Fed President Neel Kashkari on Tuesday said it’s “possible” that the recent rise in longer-term Treasury yields means the U.S. central bank need not raise interest rates as much as otherwise, while Atlanta Fed President Raphael Bostic sees no more U.S. rate hikes. Gold prices rebounded from recent seven-month lows as Mid-East tensions fuelled safe-haven demand for bullion, but its next move depends on this week’s U.S. inflation data, pivotal to determining Fed’s upcoming rate trajectory.


In base metal counter, Copper can move positive path as it can move in range of 701-712. Codelco, a major copper producer, offered copper to European customers for next year at a premium of $234 per metric ton, matching this year’s record. ICSG forecasts a deficit of 27,000 metric tons in the global copper market this year, followed by a surplus of 467,000 tons in 2024. China’s major copper buyers anticipate paying a premium of around $90 per metric ton for Codelco’s metal next year, a 36% decrease from this year’s rates. Copper premiums are significant for global contracts. Aluminum can move in range of 202-208. Chile, a top copper producer, reported a 6.6% increase in copper exports to $3.86 billion in September compared to the previous year, according to the central bank.


Crude oil may trade on upside path as it can move in range of 7120-7250. Oil edged higher as investors grappled with the prospect of supply disruptions due to the Middle East turmoil. Brent and WTI surged more than $3.50 on Monday as the military clashes raised fears that the conflict could spread beyond Gaza, but settled lower in Tuesday’s session. Israel produces very little crude oil, but markets are worried that the conflict could escalate and hurt Middle East supply, worsening an expected deficit for the rest of the year. Israel says it has razed sections of Gaza in retaliation for the Hamas assaults. Keeping markets on edge, powerful Iraqi and Yemeni armed groups aligned with Iran have threatened to target U.S. interests with missiles and drones if Washington intervenes to support Israel. Natural gas prices may trade on firm path as it can move in range of 278-290.




















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