Commodity Morning Trading Guide | Globe Capital Market LTD.
12-Feb-2024
Commodity Morning Trading Guide

Bullions counter may trade on mixed path as yellow metal prices steadied in a tight range today in holiday-thinned trading, as investors awaited remarks from a slew of U.S. Federal Reserve officials in a data-packed week.

Report Overview

BULLIONS

Bullions counter may trade on mixed path as yellow metal prices steadied in a tight range today in holiday-thinned trading, as investors awaited remarks from a slew of U.S. Federal Reserve officials in a data-packed week. Trading is expected to be thin during Asian trading hours due to holidays in China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam and Malaysia. Overall gold can move in range of 62000-62500 while silver also can move in range of 70000-71800. COMEX gold speculators raised their net long position by 10,616 contracts to 82,591 in the week ended Feb. 6, data showed on Friday. Market participants will focus on U.S. CPI data on Tuesday, retail sales data on Thursday and producer price index (PPI) data on Friday, while also awaiting remarks from atlas 7 Fed officials this week.

BASE METALS

In base metal counter, Copper can move lower in range of 695-708. Copper continue to decline was attributed to several factors, including the strength of the dollar and pessimistic industrial sentiment in China, the world’s top consumer of the metal. Despite the unexpected growth in the Caixin China General Manufacturing PMI, contrasting with official data, factories remained cautious, leading to a decline in the Yangshan copper premium and a significant increase in inventories in major Chinese warehouses. On the global scale, preliminary data from the ICSG indicated a modest 1% increase in world copper mine production over the first 11 months of 2023. Aluminium may trade on downside path in range of 197-203.

ENERGY

Crude oil may trade on upside path as it may move in range of 6250-6450. Oil prices fell in early Asian trade on Monday after Israel said it had “concluded” a series of strikes in southern Gaza, slightly easing concerns about supply from the Middle East. Geo-political risks including a feared broadening of the Israel-Palestinian conflict across the region and potential oil supply disruption in the Middle East pushed prices up by about 6% last week. The Israeli military said on Monday it had conducted a “series of strikes” on southern Gaza that have now “concluded,” days after Israeli Prime Minister Benjamin Netanyahu rejected a ceasefire proposal from Hamas. U.S. energy firms increased oil and natural gas rigs to their highest since mid-December, potentially signaling an increase in output. Domestic production returned last week to a record 13.3 million barrels per day (bpd).Natural gas prices may continue to tumble lower as it may move in range of 145-160.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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