Commodity Morning Trading Guide | Globe Capital
12-Dec-2022
Commodity Morning Trading Guide

Bullions counter may trade volatile path as investors positioned for key U.S. inflation data and the Federal Reserve’s rate-hike verdict due this week. Gold (Feb) can move in range of 54000-54400 while silver (Mar) can move towards 67400-68400.  

Report Overview

BULLIONS

Bullions counter may trade volatile path as investors positioned for key U.S. inflation data and the Federal Reserve’s rate-hike verdict due this week. Gold (Feb) can move in range of 54000-54400 while silver (Mar) can move towards 67400-68400. Investors will keep a close eye on Tuesday’s U.S. Consumer Price Index (CPI) data and Fed’s final meeting of 2022 scheduled on Dec. 13-14. U.S. producer prices rose slightly more than expected in November amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years. European Central Bank (ECB) and the Bank of England (BoE) are also set to announce rate hikes this week, as policymakers continue their battle against inflation.

BASE METALS

In base metal counter, Copper can move on sideways path as it can move in range of 690-710. Copper inventories in major Chinese markets decreased by 2,600 mt to 104,800 mt from last Monday. The increase in inventory in Shanghai was mainly due to the growing arrival of imported copper, while that in Guangdong continued to fall because of the maintenance of surrounding smelters. Zinc may move on upside path as it can test 288 while taking support near 280. Aluminum can trade on mixed path as it can move in range of 205-220.  The domestic operating aluminium capacity continued to rise. And because of winter and approaching New Year’s Day, aluminium smelters raised the proportion of ingots. On the demand side, the downstream consumption was poor in the traditional off-season.

ENERGY: Crude oil may witness some bounce back as it can test 6100 while taking support near 5850. Oil prices rose as a key pipeline supplying the United States stayed shut while Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports. On Sunday, Canada’s TC Energy said it has not yet determined the cause of the Keystone oil pipeline leak last week in the United States, while also not giving a timeline as to when the pipeline will resume operations. Natural gas prices can on higher path as it can test 585 while taking support near 540. The catalysts behind the rally were forecasts for much colder weather and higher heating demand through late December than previously expected.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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