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

Bullion counter can remain sideways as investors will awaits US inflation data later today to get clues on how aggressive the Federal Reserve needs to be in raising interest rates. Gold (Oct) can move towards 50600 while taking support 50350 while Silver (Dec) can move towards 58500 while taking support near 56000.

Report Overview

BULLIONS

Bullion counter can remain sideways as investors will awaits US inflation data later today to get clues on how aggressive the Federal Reserve needs to be in raising interest rates. Gold (Oct) can move towards 50600 while taking support 50350 while Silver (Dec) can move towards 58500 while taking support near 56000. U.S. consumer price data, due at 6 pm Indian time and is expected to show headline inflation rose 8.1% year-over-year in August versus 8.5% in July. Even though gold is seen as a hedge against inflation, higher interest rates increase the opportunity cost of holding the bullion while boosts the dollar, in which the precious metal is priced.

BASE METALS

In base metal counter Copper can bounce towards 675 while taking support near 655. On the macro front, before the release of the US inflation data, the market sentiment was cautious, and as the central banks of Europe, Japan, Germany and other countries were inclined to a hawkish rate hike, the US dollar index dropped quickly after hitting a 20-year high last Wednesday and fell on Monday. Zinc may trade in range 275-305 in MCX. Aluminum can also recover towards 205. On the whole, the domestic aluminium supply was disrupted by power rationing, while the macro sentiment improved. It is expected that the short-term SHFE aluminium prices will still have upside room.

ENERGY

Crude oil may remain on firm note on rising demand as it can move towards 7100 while taking support near 6850. Investors are worried about tight supply ahead of the winter heating season in the Northern Hemisphere. In the United States, emergency oil stocks fell 8.4 million barrels to 434.1 million barrels in the week ended Sept. 9, the lowest level since October 1984, according to data released on Monday by the U.S. Department of Energy (DOE). U.S. President Joe Biden in March set a plan to release 1 million barrels per day over six months from the Strategic Petroleum Reserve (SPR) to tackle high U.S. fuel prices, which have contributed to soaring inflation. Natural gas prices can trade with mixed bias as in range of 650-680.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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