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

Bullions counter may trade on volatile path as investor’s maintained caution ahead of U.S. inflation data today and the Federal Reserve’s policy decision tomorrow. Gold (Feb) can move in range of 53900-54300 while silver (Mar) can move towards 67300-68500.  

Report Overview

BULLIONS

Bullions counter may trade on volatile path as investor’s maintained caution ahead of U.S. inflation data today and the Federal Reserve’s policy decision tomorrow. Gold (Feb) can move in range of 53900-54300 while silver (Mar) can move towards 67300-68500. The U.S. central bank is widely expected to hike interest rates by 50 basis points (bps) at its final meeting of this year scheduled on Dec. 13-14. The European Central Bank and the Bank of England are also set to announce interest rate decisions this week. Lower rates tend to boost gold’s appeal as it decreases the opportunity cost of holding the non-yielding bullion.

BASE METALS

In base metal counter, Copper can move on sideways path as it can move in range of 690-710. Arrivals of both domestic and imported copper rose in Shanghai while the downstream consumption remained poor. Arrivals in Guangdong were affected by the maintenance of surrounding smelters. Demand picked up somewhat with the relaxation of COVID-19 control measures in China, but the overall demand will remain poor. Zinc may move on upside path as it can test 295 while taking support near 286. Aluminum can trade on mixed path as it can move in range of 205-220.  On the supply side, Guizhou’s electricity is in short supply, and local aluminium smelters may reduce their capacity by 20%. On the demand side, the downstream consumption was poor in the traditional off-season. Some aluminium processing plants plan to close early for the Chinese New Year.

ENERGY: Crude oil may continue its recovery as it can test 6250 while taking support near 6000. Oil prices as a key pipeline supplying the United States, the world’s biggest crude consumer, remained shut and on expectations loosening COVID restrictions in China, the second-biggest user globally, will boost demand. The closure of TC Energy Corp’s Keystone Pipeline, which ships about 620,000 barrels-per-day of Canadian crude from Alberta to the United States, has tightened supplies and raised the prospect that inventories at the Cushing, Oklahoma, storage hub will decline. Keystone has remained shut since a 14,000-barrel leak in the U.S. state of Kansas reported on Dec. 7. TC Energy has not released a timeline for a restart of the line, which carries crude to refineries in the Midwest and Gulf Coast. Natural gas prices can witness some profit booking at higher levels as it can test 530 while taking resistance near 580.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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