Commodity Morning Trading Guide | Globe Capital Market LTD.
Commodity Morning Trading Guide

Bullions counter may trade on mixed path as traders braced for a slew of economic data due later in the week that could offer fresh clues on the U.S. central bank’s monetary policy path.

Report Overview


Bullions counter may trade on mixed path as traders braced for a slew of economic data due later in the week that could offer fresh clues on the U.S. central bank’s monetary policy path. Gold can move in range of 62200-62700 while silver also can move in range of 74800-75800. Gold prices should stabilize above $2,000 and mostly trade higher considering geopolitical risks in the market, including U.S. elections next year, which could prompt money managers to ramp up gold in their portfolio. Atlanta Fed President Raphael Bostic on Tuesday said there is no current “urgency” to reduce U.S. interest rates given the strength of the economy. Lower U.S. interest rates boost the appeal of gold. Markets are pricing in an about 79% chance of a rate cut in March, according to the CME FedWatch tool.


In base metal counter, Copper can move in range of 726-738. Copper is set to finish the year as the top-performing industrial metal, as a series of production disruptions squeezes the supply of a commodity used in power lines, cars and household appliances. A recent price spurt following mine supply problems in Latin America, coupled with signs of improvement in the Chinese economy, have put the red metal up 2.5 per cent so far this year at $8,600 per tonne. The closure of a giant mine in Panama and a severe downgrade in Anglo American’s forecasted copper production in recent weeks have contributed to removing 750,000 tonnes or 3 per cent of global supply next year compared with previous estimates. Zinc can move in range of 223-230.


Crude oil may witness some profit booking at higher levels as it may move in range of 6100-6230. Oil prices fell and were on track to snap a three-day winning streak, as concerns over low demand following a surprise U.S. crude inventory build outweighed jitters over global trade disruptions due to tensions in the Middle East. Both benchmarks ended higher on Wednesday for a third straight session, as investors worried about trade disruptions given major maritime carriers chose to steer clear of the Red Sea route, with longer voyages increasing transport and insurance costs. The U.S. Energy Information Administration (EIA) said on Wednesday that U.S. crude inventories rose by 2.9 million barrels in the week to Dec. 15 to 443.7 million barrels, compared with analysts’ expectations in a Reuters poll for a 2.3 million barrel drop. EIA also said U.S. crude output rose to a record 13.3 million barrels per day (bpd) last week, up from the prior all-time high of 13.2 million bpd. Natural gas prices may remain on weaker path as it can move in range of 190-210.


















































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