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

Bullion counter can continue to tumble lower as firm U.S. dollar index and expectations of big interest rate hikes from the Federal Reserve in next week meeting is keeping prices under selling pressure. Gold (Oct) can move lower towards 49000 while taking resistance near 49300 while Silver (Dec) can dip towards 56000 while taking resistance near 57000.

Report Overview

BULLIONS

Bullion counter can continue to tumble lower as firm U.S. dollar index and expectations of big interest rate hikes from the Federal Reserve in next week meeting is keeping prices under selling pressure. Gold (Oct) can move lower towards 49000 while taking resistance near 49300 while Silver (Dec) can dip towards 56000 while taking resistance near 57000. U.S. retail sales unexpectedly rebounded in August, but demand is cooling as the Federal Reserve aggressively raises interest rates to fight inflation. Separate data showed U.S. weekly jobless claims fell last week. Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.15% to 962.01 tonnes on Thursday from 960.56 tonnes on Wednesday.

BASE METALS

In base metal counter, Copper can continue to trade in red as it can move towards 630. According to customs statistics, the import volume of copper scrap in July was 155,200 mt, down 6.04% from the previous month. The imports totalled 1.04 million mt from January to July, a year-on-year increase of 6.77%. The decline in imports in July was in line with the expectations, which was caused by the sharp drop in copper prices in late June. the losses of overseas suppliers, the tight supply of high-quality red copper scrap, and the poor demand for imported brass scrap from domestic copper billet companies. Zinc may move southwards as it can test 270 in MCX. Aluminum can also move lower towards 196.

ENERGY

Crude oil may continue to move lower as it can move towards 6600 while taking resistance near 6950. Crude oil prices were on track for a weekly decline amid fears of sharp interest rate hikes that would slam global growth and hit fuel demand. The market was also rattled by the International Energy Agency’s outlook for almost zero growth in oil demand in the fourth quarter due to a weaker demand outlook for China. On the supply side, the market has found some support on dwindling expectations of a return of Iranian crude, as Western officials played down prospects of reviving a nuclear accord with Tehran. Natural gas prices may remain in red as it can test 640 in MCX. The U.S. Energy Information Administration (EIA) reported an injection of 77 Bcf natural gas into storage for the week ended Sept. 9. The result came in above median estimates and added pressure to already slumping Nymex natural gas futures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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