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

Bullion counter can continue to trade on lower side as firm dollar index and expectations of big interest rate hikes from the Federal Reserve in this week FOMC meeting is keeping prices tame down. Gold (Oct) can move lower towards 49100 while taking resistance near 49400 while Silver (Dec) can dip towards 56200 while taking resistance near 57600.

Report Overview

BULLIONS

Bullion counter can continue to trade on lower side as firm dollar index and expectations of big interest rate hikes from the Federal Reserve in this week FOMC meeting is keeping prices tame down. Gold (Oct) can move lower towards 49100 while taking resistance near 49400 while Silver (Dec) can dip towards 56200 while taking resistance near 57600. The U.S. Fed’s Federal Open Market Committee is expected to begin its two-day meeting on interest rates on Sept. 20 and announce its decision the following day. Markets are fully pricing in a 75-basis-point rate hike by the U.S. central bank. Speculators switch to net short position of 10,132 contracts in the week ended Sept. 13 in COMEX gold, while they trimmed net  short position in COMEX silver, the U.S. Commodity Futures Trading Commission said on Friday.

BASE METALS

In base metal counter, Copper can continue to trade in red as it can move towards 640. Zinc may move sideways in range of 280-286 in MCX. Aluminum can move lower towards 196. The puzzle facing the zinc market is whether demand or supply will fall hardest this year. Both were down in the first half of the year, according to the latest assessment by the International Lead and Zinc Study Group (ILZSG). An estimated 3.0% drop in global usage marginally outpaced a 2.6% slide in global production of refined metal. The figures are preliminary and subject to revision but they capture zinc’s conflicting dynamics and increasingly fractured pricing. China’s aluminium imports in August dropped 19% from a year earlier, customs data showed on Sunday, reflecting lowered import appetite amid record-high domestic production and tight overseas supply.

ENERGY

Crude oil may continue to move on positive bias as it can move towards 6950 while taking support near 6750. Meanwhile supply concerns ahead of the European Union embargo on Russian oil in December offset fears of a global recession. China has started easing COVID curbs in Chengdu, a southwestern city of more than 21 million people, which has helped to soothe concerns about demand in the world’s No. 2 energy consumer. China’s gasoline and diesel exports also rebounded, easing high local inventories, after Beijing issued fresh quotas. The oil and gas rig count, an early indicator of future output, rose four to 763 in the week to Sept. 16, its highest since August, energy services firm Baker Hughes Co said on Friday. Natural gas prices may remain in red as it can test 590 in MCX. Natural gas futures floundered a last week as markets continued to digest a bearish storage report, looming fall weather and an averted railroad strike that could have snarled supply chains and wreaked havoc across the U.S. economy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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