Commodity Morning Trading Guide | Globe Capital
12-Jan-2023
Commodity Morning Trading Guide

Bullions counter can trade on volatile path as investors awaited key U.S. inflation data today that could influence the Federal Reserve's policy path. Gold can move in range of 55700-56000 while Silver also can move in range of 67500-69000.

Report Overview

BULLIONS

Bullions counter can trade on volatile path as investors awaited key U.S. inflation data today that could influence the Federal Reserve’s policy path. Gold can move in range of 55700-56000 while Silver also can move in range of 67500-69000. Boston Federal Reserve bank leader Susan Collins said she is inclined to raise interest rates by a quarter percentage point at the central bank’s upcoming policy meeting, the New York Times reported on Wednesday. On the physical front, Indian gold refiners have nearly stopped imports of gold dore, a semi-pure alloy, as grey market operators offer hefty discounts, industry officials said.

BASE METALS

In base metal counter, Copper can remain on higher side as it can move in range of 755-772. In terms of fundamentals, in China the current import losses have exceeded 1,400 yuan/mt. The closure of the import window has led to a rapid reduction in the source of imports, and it has also created export profits for domestic smelters. In addition, as the Chinese New Year (CNY) is approaching, the smelters and traders reduced their activities in the market. The spot market was relatively slack. Zinc may move on firm path as it can move in range of 275-285. Aluminum can trade sideways in range of 208-218.  After the positive overseas macro factors have been digested, China released a series of favourable policies, boosting market confidence. However, poor downstream demand ahead of the upcoming CNY holiday and rapidly rising inventory will prevent aluminium prices from going up.

ENERGY: Crude oil may trade on firm path as it can move in range of 6250-6450 in MCX. Oil prices rose as China’s demand outlook improves and concerns rise over the impact of sanctions on Russian supply. Top oil importer China is reopening its economy after the end of strict COVID-19 curbs, boosting optimism that demand for fuel will grow in 2023. The market is bracing for additional curbs aimed at Russian fuel products sales set to come into force in February as the European Union (EU) keeps working on more sanctions against Moscow over the invasion of Ukraine. The U.S. Energy Information Administration said the upcoming EU ban on seaborne imports of petroleum products from Russia on Feb. 5 could be more disruptive than the EU ban on seaborne imports of crude oil from Russia implemented in December 2022. Natural gas prices can witness some bounce back at lower levels as it can move in range of 295-320.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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