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

Bullions may remain downbeat on firm dollar index as traders looked forward to U.S. Federal Reserve minutes and key inflation data for clues on the pace of future interest rate hikes. Gold can test 50500 while taking resistance near 50900 while Silver can move towards 57000 while taking resistance near 58500.

Report Overview

BULLIONS

Bullions may remain downbeat on firm dollar index as traders looked forward to U.S. Federal Reserve minutes and key inflation data for clues on the pace of future interest rate hikes. Gold can test 50500 while taking resistance near 50900 while Silver can move towards 57000 while taking resistance near 58500. The Federal Open Market Committee will issue minutes of its Sept. 20-21 meeting at 1800 GMT later in the day. The U.S. inflation reading will be released on Thursday and could cement expectations of another big rate hike at the November meeting. The International Monetary Fund warned on Tuesday that colliding pressures from inflation, war-driven energy and food crises and sharply higher interest rates were pushing the world to the brink of recession.

BASE METALS

In base metal counter, Copper can trade with weak bias as it can move in range of 644-658. China copper cathode output stood at 909,000 mt in September, up 6.12% month-on-month and 13.21% year-on-year. China copper cathode output is estimated at 936,600 mt in October, up 3.04% MoM and 18.65% YoY based on the current production schedules. Zinc may dip further as it can test 264 while taking resistance near 275 in MCX. China’s refined zinc output stood at 494,600 mt in May, down 2.06% or 10,400 mt on the month and up 4.32% on the year. Output stood at 2.51 million mt in January-May, up 4.51% year on year. Aluminum can trade with weak bias as it can move in range of 196-200 in MCX.

ENERGY

Crude oil may remain in red as investors suspect that global fuel demand will take a hit from growing risks of a global recession and tightening COVID-19 curbs in China. Overall it can move in range of 7200-7400.The oil market is also being pressured by tightening COVID-19 curbs in China, the world’s second-largest oil consumer. Inventories data are delayed by a day this week because of a holiday on Monday. Industry data from the American Petroleum Institute is due on Wednesday while the U.S. Energy Information Administration, will release its data on Thursday. Last week, the Organization of the Petroleum Exporting Countries and allies including Russia, together known as OPEC+, decided to cut their output target by 2 million barrels per day. Natural gas prices may trade sideways in range of 535-560 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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