Commodity Morning Trading Guide | Globe Capital
18-Nov-2022
Commodity Morning Trading Guide

Bullions counter may trade on sideways path on mixed fundamentals. Gold can move in range of 52700-53000 while silver can move in range of 61000-62000. Gold is on the path on the first weekly decline in three, weighed down by signals from U.S. central bankers that more interest rate hikes were on the way.

Report Overview

BULLIONS

Bullions counter may trade on sideways path on mixed fundamentals. Gold can move in range of 52700-53000 while silver can move in range of 61000-62000. Gold is on the path on the first weekly decline in three, weighed down by signals from U.S. central bankers that more interest rate hikes were on the way. U.S. currency was still headed for its best week in a month, as hawkish remarks from Fed officials and stronger-than-expected domestic monthly retail sales put the brakes on a pullback triggered by signs of softening inflation. Two Federal Reserve officials sounded a still aggressively hawkish tone on U.S. monetary policy. St. Louis Fed President James Bullard said the central bank needs to raise interest rates higher to restrict the economy in order to bring down problematic inflation.

BASE METALS

In base metal counter, Copper can trade with weaker path as it can test 670 while taking resistance near 690. In terms of fundamentals, LME copper stocks increased by 250 mt to 89,925 mt. In China, as the SHFE/LME copper price ratio continued to decline, the import market trading was slack, hence the inflow of imported copper will be relatively limited. Zinc may slip lower as it can test 265 while taking resistance near 275.  On the supply side, China November refined zinc output is likely to add merely 5,000 mt to 519,100 mt due to environmental protection requirements in Sichuan and pandemic in Qinghai, and the new forecast was 18,200 mt less than the previous one. Aluminum can move on sideways path in range of 204-211. The driving force for aluminium prices will come from the improvement of macro sentiment and expected demand recovery.

ENERGY: Crude oil may witness some short covering at lower levels as it can recover towards 6900 while taking support near 6650. Recession concerns have dominated this week even with the European Union’s ban on Russian crude looming on Dec. 5 and the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, tightening supply. China reported 25,353 new COVID-19 infections on Nov. 17 up from 23,276 new cases a day earlier, the National Health Commission said on Friday. Natural gas prices may remain on positive path as it can test 530 while taking support near 500.  EIA weekly Natural Gas Storage Report indicated that working gas in storage increased by 64 Bcf from the previous week, compared to analyst consensus of 63 Bcf.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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