Commodity Morning Trading Guide | Globe Capital Market LTD.
14-Nov-2024
Commodity Morning Trading Guide

Bullions counter may trade on lower path as yellow prices were flat on Thursday after hitting a two-month low earlier, pressured by a stronger U.S. dollar and uncertainty regarding the pace of the Federal Reserve's interest rate cuts.

Report Overview

COMMODITY DAILY MARKET NEWS AND OUTLOOK

BULLIONS

  • Bullions counter may trade on lower path as yellow prices were flat on Thursday after hitting a two-month low earlier, pressured by a stronger U.S. dollar and uncertainty regarding the pace of the Federal Reserve’s interest rate cuts.
  • Overall gold can move in range of 73500- 74100 while silver also can move in range of 87500 -91000.
  • Data on Wednesday showed that U.S. consumer prices increased as expected in October, and progress toward low inflation has slowed in recent months, which could result in fewer interest rate cuts from the Fed next year.
  • Investors are awaiting the U.S. Producer Price Index (PPI) and weekly jobless claims report, both due at 1330 GMT, along with comments from Fed Chair Jerome Powell, who is scheduled to speak later in the day.

BASE METALS

  • In base metal counter, Copper (Nov) prices can trade on weaker path as it can move in range of 780-800. Copper prices extended declines on Thursday to hit two-month lows, weighed down by a stronger U.S. dollar and concerns about demand from top consumer China.
  • Aluminium prices can trade on mixed path as it may move in range of 232-236.while lead may move in range of 177-182.
  • Investors have also been disappointed by the scale of China’s recent stimulus measures to reboot its lackluster economy. China’s property market is one of the largest consumers of base metals.
  • We see copper prices trading lower to $8,500-$9,000 per ton into year-end as likely U.S. trade tariff hikes and weaker-than-expected China stimulus detail so far have weighed on our conviction in a global manufacturing recovery through 2025, with investor positioning length vulnerable to a further unwind.

 ENERGY

  • Crude oil may trade on lower path as it can move in range of 5650-5850. Oil prices dropped slightly early on Thursday on expectations of higher global production amid forecasts for weak demand growth, while a firmer dollar also kept a lid on prices.
  • The U.S. Energy Information Administration has slightly raised its expectation of U.S. oil output to an average 13.23 million barrels per day this year, or 300,000 bpd higher than last year’s record of 12.93 million bpd, and up from 13.22 million bpd forecast earlier.
  • The agency also raised its global oil output forecast for 2024 to 102.6 million bpd, from its prior forecast of 102.5 million bpd. For next year, it expects world output of 104.7 million bpd, up from 104.5 million bpd previously.
  • The EIA forecasts oil demand growth weaker than OPEC, at about 1 million bpd in 2024, although that is up from its prior forecast of about 900,000 bpd.
  • Natural gas (Nov) may trade on upside path as it can move in range of 244-255.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclosure

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