Commodity Morning Trading Guide | Globe Capital Market LTD.
16-Oct-2023
Commodity Morning Trading Guide

Bullions counter may trade on firm path as escalating fears of the conflict between Israel and Palestinian militant group Hamas boosted safe-haven.

Report Overview

BULLIONS

Bullions counter may trade on firm path as escalating fears of the conflict between Israel and Palestinian militant group Hamas boosted safe-haven. Gold can move in range of 59200-59800 while silver also can move in range of 70500-72000. U.S. President Joe Biden said on Sunday he believes the Hamas militant group must be eliminated but there should be a path to a Palestinian state, after top U.S. officials warned the war between Israel and Hamas could escalate. The Israeli-Hamas war has sharpened focus on rising geopolitical risks for financial markets, as investors wait to see if the conflict draws in other countries with the potential to drive up oil prices further and deal a fresh blow to the world economy. U.S. consumer sentiment deteriorated in October, with households expecting higher inflation over the next year, but labor market strength was likely to continue supporting consumer spending. The physical gold market in India flipped to a discount last week as a rebound in domestic prices made buyers walk away, while premiums in China retreated further from recent highs.

BASE METALS

In base metal counter, Copper can move on mixed path as it can move in range of 695-705. Copper inventories on the London Metal Exchange reached the highest level in nearly two years, continuing a rebound that’s taking the strain off buyers after years of chronic supply constraints. The copper market’s slackening supply dynamics — unwinding a key support for prices this year — have contributed to a gloomy mood among traders and investors at LME Week in London, the metals industry’s biggest annual gathering. Aluminum can move in range of 201-207.

 

ENERGY

Crude oil may trade on upside path in range of 7150-7350 as investors wait to see if the Israel-Hamas conflict draws in other countries, which could drive up prices and deal a fresh blow to the global economy. The conflict in the Middle East has had little impact on global oil and gas supplies, and Israel is not a big producer. But the war between Islamist group Hamas and Israel poses one of the most significant geopolitical risks to oil markets since Russia’s invasion of Ukraine last year, amid concerns about any potential escalation involving Iran. Market participants are assessing what a wider conflict might imply for supplies from countries in the world’s top oil producing region, including Saudi Arabia, Iran and the United Arab Emirates. Israel’s Prime Minister Benjamin Netanyahu vowed on Sunday to “demolish Hamas” as his troops prepared to move into the Gaza Strip in pursuit of Hamas militants whose deadly rampage through Israeli border towns shocked the world. Iran warned on Saturday that if Israel’s “war crimes and genocide” are not stopped then the situation could spiral out of control with “far-reaching consequences.”Natural gas prices may trade on volatile path as it can move in range of 265-275.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclosure

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