Commodity Morning Trading Guide | Globe Capital
20-Dec-2022
Commodity Morning Trading Guide

Bullions counter can trade with mixed bias as a firmer dollar and lingering worries about further rate hikes from the U.S. Federal Reserve dampened the non-yielding bullion’s outlook. Gold can move in range of 54200-54700 while Silver also can move in range of 67000-68000.

Report Overview

BULLIONS

Bullions counter can trade with mixed bias as a firmer dollar and lingering worries about further rate hikes from the U.S. Federal Reserve dampened the non-yielding bullion’s outlook. Gold can move in range of 54200-54700 while Silver also can move in range of 67000-68000. Last week, Fed Chair Jerome Powell said the U.S. central bank will deliver more interest rate hikes next year to curb inflation. Other major central banks have also highlighted a similar hawkish stance. The European Central Bank will not revise its mid-term price stability goal as that would undermine credibility, Vice-President Luis de Guindos said, adding that it was determined to keep raising interest rates.

BASE METALS

In base metal counter, subdued movement can be seen as Copper can move on sideways path as it can move in range of 695-710. Copper social inventory in mainstream markets dropped 12,400 mt from last Friday to 81,900 mt on Monday December 19, a new low in the same period in history, mainly due to limited inflow of imported copper and robust downstream restocking after copper prices fell. On the consumption side, it was once again hit by the loosening pandemic control, and the demand is expected to remain low as the market players are preparing to close the accounts. Zinc may move on mixed path as it can move in range of 265-275. Aluminum can move lower in range of 205-212.  On the supply side, Guizhou Huaren and Zunyi Aluminium have basically completion production cuts that were caused by power rationing, with an estimated loss of over 200,000 mt of annualised production capacity.

ENERGY: Crude oil may trade on upside path as it can move in range of 6200- 6400. Oil prices rose in as U.S. plan to restock its Strategic Petroleum Reserve, but gains were limited by uncertainty over the impact of rising COVID-19 cases in China, the world’s top oil importer. The market has been supported by the U.S. plan announced last week to buy up to 3 million barrels of oil for the Strategic Petroleum Reserve following this year’s record release of 180 million barrels from the stockpile. China on Tuesday reported a jump in new confirmed coronavirus cases to 2,722 on Dec. 19, up from 1,995 a day earlier. There are, however, mounting doubts over whether the official count is capturing the real number of infections with anecdotal evidence suggesting the disease is ripping through cities. Natural gas prices can witness further weakness as it can test 450 while taking resistance near 500.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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