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

Bullions counter may trade on mixed path as yellow metal hovered near a 2-1/2-month high as escalating Middle East turmoil buoyed demand for the safe-haven asset.

Report Overview

BULLIONS

Bullions counter may trade on mixed path as yellow metal hovered near a 2-1/2-month high as escalating Middle East turmoil buoyed demand for the safe-haven asset, while investors awaited U.S. Federal Reserve Chair Jerome Powell’s speech due later in the day. Gold can move in range of 59600-60000 while silver also can move in range of 71000-72000. Market focus will be on Powell’s speech to the Economic Club of New York for more cues on the interest rate path after recent dovish comments from several Fed officials. U.S. President Joe Biden pledged to help Israel and the Palestinians during a visit on Wednesday, but a deadly hospital blast that he ascribed to an errant rocket fired by Gaza militants derailed talks to prevent the war from spreading.

BASE METALS

In base metal counter, Copper can move on mixed path as it can move in range of 697-707. On the macro front, the U.S. housing starts data released on Wednesday, though lower than expected, exceeded the previous value. In addition, Federal Reserve Governor Waller changed his tone and said that the Federal Reserve may need to continue to raise interest rates, but hinted that it supports staying on hold, and the U.S. dollar index rose. Recently, the swinging expectations of short-term interest rate hikes and the intensification of the Palestinian-Israeli conflict added uncertainty to market. Aluminum can move in range of 201-205. Aluminium gains as China September aluminium output up amid robust demand.

ENERGY

Crude oil may trade on volatile path as it may move in range of 7200-7350. Oil prices fell marginally reversing gains in the previous session, after OPEC showed no signs of supporting Iran’s call for an oil embargo on Israel and as the United States plans to ease Venezuela sanctions to allow more oil to flow globally. U.S. crude oil and fuel inventories dropped last week on rising demand for diesel and heating oil, according to data from the Energy Information Administration. Distillate fuel stockpiles fell by 3.2 million barrels in the week to Oct. 13 to 113.8 million barrels, EIA data showed. Crude inventories fell by 4.5 million barrels to 419.7 million barrels, while gasoline fell by 2.4 million barrels to 223.3 million barrels. Venezuela’s oil flows could help to ease global oil prices, up amid the Israel-Hamas conflict, sanctions on Russia and OPEC+ decisions to reduce output, but Venezuela needs investments to boost output following years of sanctions. Natural gas prices may trade on subdued path as it can move in range of 242-260.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclosure

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