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

Bullions counter may witness some short covering at lower levels. Gold can move in range of 50200-50400 while Silver can move in range of 56000-57000. With latest data showing inflation continuing to run at more than three times the central bank’s 2% target, the report may do little to temper expectations for a fourth straight 75-basis-point rate hike next month.

Report Overview

BULLIONS

Bullions counter may witness some short covering at lower levels. Gold can move in range of 50200-50400 while Silver can move in range of 56000-57000. With latest data showing inflation continuing to run at more than three times the central bank’s 2% target, the report may do little to temper expectations for a fourth straight 75-basis-point rate hike next month. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 6.08 tonnes on Wednesday, their biggest one-day outflow since July. Euro zone consumer inflation was marginally lower in September than estimated earlier, data showed on Wednesday, but still at a record high, underlining market expectations of more rate rises before the end of the year.

BASE METALS

In base metal counter, Copper can trade with weak bias as it can dip lower towards 635 while taking resistance near 650. According to the report released by World Bureau of Metal Statistics (WBMS), the global copper market recorded a deficit of 657,000 mt in January to August 2022, which follows a deficit of 283,000 mt in the whole of 2021. World mine output in January to August 2022 was 14.27 million mt, up 1.7% compared with the first eight months of 2021. Global cooper cathode output for January to August 2022 was 16.4 million mt, up 1.3% compared with the previous year with significant increases recorded in China and India of 251,000 mt and 52,000 mt respectively. Zinc may remain sideways bias as it can move in range of 265-275. Aluminum can trade with sideways bias in range of 193-200 in MCX.

 ENERGY

Crude oil may witness range bound movement as investor’s balanced caution over tightening supply against concerns that a global slowdown could curb demand. Overall it can move in range of 6900-7200. Oil prices have been boosted by a looming European Union ban on Russian crude and oil products, as well as the output cut from the Organization of the Petroleum Exporting Countries and other producers including Russia, known as OPEC+. The OPEC+ agreed on a production cut of 2 million barrels per day in early October – but analysts expect a smaller decline in actual output of about 1 million barrels per day due to under-production in countries such as Iran, Venezuela and Nigeria. China has also continued with strict COVID-19 curbs this year, hurting business and economic activity in the world’s largest crude importer. Natural gas prices may slip further lower as it can test 440 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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