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

Bullions counter can witness some profit booking at higher levels after the recent rally dollar weakened after the Bank of Japan’s surprise policy tweak. The dollar index was flat after falling on Tuesday as the yen jumped to a four-month high after the BOJ stunned markets with a surprise tweak to its bond yield control program. Gold can move in range of 54700-55200 while Silver also can move in range of 69000-70500.

Report Overview

BULLIONS

Bullions counter can witness some profit booking at higher levels after the recent rally dollar weakened after the Bank of Japan’s surprise policy tweak. The dollar index was flat after falling on Tuesday as the yen jumped to a four-month high after the BOJ stunned markets with a surprise tweak to its bond yield control program. Gold can move in range of 54700-55200 while Silver also can move in range of 69000-70500. Last week, Federal Reserve Chair Jerome Powell said the U.S. central bank will deliver more rate hikes next year, even as the economy slips towards a possible recession. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 913.88 tonnes on Tuesday.

BASE METALS

In base metal counter, Copper can move on recover towards as it can move in range of 705-718. On the macro front, the Bank of Japan unexpectedly raised the Japanese government bond yields, which sent a shock wave across the market. As a result, Japanese yen jumped to a four-month high against the greenback, setting a new record of daily gain over the past 24 years. The falling USD benefited the copper prices. Zinc may move on mixed path as it can move in range of 270-278. Aluminum can move lower in range of 207-212.  On the fundamentals, the supply of aluminium is likely to fall short in December due to power rationing in south-west China, but the global supply has still maintained growth. On the demand side, the downstream sectors entered the off-season featuring sluggish consumption.

ENERGY: Crude oil may trade on upside path as it can move in range of 6250- 6350. Crude oil can get support as U.S. crude stocks were seen falling last week, while the dollar weakened, making oil less expensive for non-American buyers. U.S. crude oil inventories fell by about 3.1 million barrels in the week ended Dec. 16, according to market sources citing American Petroleum Institute figures. Gasoline inventories rose by about 4.5 million barrels, while distillate stocks rose by 828,000 barrels. China’s crude oil imports from Russia rose 17% in November from a year earlier, as Chinese refiners rushed to secure more cargoes ahead of a price cap imposed by the Group of Seven nations on Dec. 5. Natural gas prices can witness short covering at lower levels as it can test 470 while taking support near 430.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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