Commodity Morning Trading Guide | Globe Capital Market LTD.
13-Jun-2023
Commodity Morning Trading Guide

Bullions counter may trade on volatile path investors awaited U.S. inflation data due later in the day and the Federal Reserve’s policy decision amid expectations of a pause in the central bank’s rate hike trajectory. Gold can move in range of 59500-60000 while silver also can move in range of 72700-73900.

Report Overview

BULLIONS

Bullions counter may trade on volatile path investors awaited U.S. inflation data due later in the day and the Federal Reserve’s policy decision amid expectations of a pause in the central bank’s rate hike trajectory. Gold can move in range of 59500-60000 while silver also can move in range of 72700-73900. While gold is seen as a hedge against inflation, higher rates to tame price pressures generally weigh on the non-yielding asset’s appeal. Traders are pricing in a roughly 80% chance of the Fed keeping rates on hold, and a 20% chance of a 25-basis-point rate hike, according to the CME FedWatch tool. The European Central Bank will deliver its rate decision on Thursday and is widely expected to raise rates by 25 basis points. But the Bank of Japan, which will announce its verdict on Friday, is expected to maintain its ultra-loose policy.

BASE METALS

In base metal counter, Copper can trade on mixed path as it can move in range of 715-725. Copper inventory across major Chinese markets stood at 98,400 mt, down 11,000 mt from last Friday and down 17,300 mt from the same period last year.  The inflows of imported copper were limited. This, combined with concentrated maintenance at smelters, reduced domestic copper supply. Hence inventories dropped across China. In terms of consumption, due to the approaching delivery and the high premiums, downstream buying interest was weak. Copper prices are expected to remain rangebound before the announcement of the Fed’s rate decision. Zinc may remain on subdued path as it can move in range of 211-216. Aluminum can trade sideways in range of 202-206.

ENERGY: Crude oil may witness some profit booking as it can move in range of 5500-5700. Investors remained cautious ahead of key policy decisions by the U.S. Federal Reserve and other central banks. Both benchmarks fell around $3 a barrel on Monday after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a two-day Fed monetary policy meeting concluding on Wednesday. In China, disappointing economic data last week raised concerns about demand growth in the world’s largest crude importer, offsetting a boost in prices from Saudi Arabia’s pledge to cut an extra 1 million barrels per day of production in July. Natural gas prices may trade with upside bias as it can move in range of 184-197.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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