Commodity Morning Trading Guide | Globe Capital Market LTD.
22-Mar-2023
Commodity Morning Trading Guide

Bullions counter may trade in narrow range as some investors stayed on the sidelines ahead of the U.S. Federal Reserve’s interest rate decision and policy outlook. Gold can move in range of 58200-58750 while silver also can move in range of 68000-69000.U.S. Treasury Secretary Janet Yellen told bankers on Tuesday the U.S. banking system was stabilizing, but further steps might be needed “if smaller institutions suffer deposit runs that pose the risk of contagion”.

Report Overview

BULLIONS

Bullions counter may trade in narrow range as some investors stayed on the sidelines ahead of the U.S. Federal Reserve’s interest rate decision and policy outlook. Gold can move in range of 58200-58750 while silver also can move in range of 68000-69000. U.S. Treasury Secretary Janet Yellen told bankers on Tuesday the U.S. banking system was stabilizing, but further steps might be needed “if smaller institutions suffer deposit runs that pose the risk of contagion”. Investor attention is now on the Fed’s decision followed by a press conference by Fed Chair Jerome Powell. Investors now keenly await the Fed’s rate decision due later in the day, with a 25-basis-point (bps) rate hike expected, according to the CME FedWatch tool. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16% to 923.11 tonnes on Tuesday from 924.55 tonnes on Monday.

BASE METALS

In base metal counter, Copper can trade witness some bounce path as it can move in range of 756-770. On the macro front, the market expects that stress in the banking sector may keep the Fed and Bank of England from raising interest rate or raising it sharply this week.  Copper prices rebounded yesterday, but due to little change in consumer demand, downstream buyers pushed for lower prices. Zinc may trade in in range of 250-258. Aluminum can trade on subdued path as it can move in range of 200-206. On the fundamentals, the Chinese domestic supply side has recovered slightly, and the current improvement in downstream consumption has driven the rapid destocking of aluminum.

ENERGY: Crude oil may witness short covering as it can move in range of 5600-5850. Meanwhile industry report showed U.S. crude inventories rose unexpectedly last week in a sign fuel demand may be weakening. Data from the American Petroleum Institute on Tuesday showed U.S. crude inventories rose by about 3.3 million barrels in the week ended March 17. OPEC+ officials, hedge fund managers and oil market participants have called the recent decline in oil prices speculative and insisted that increasing demand will push prices to higher levels in the coming months. Oil prices posted their biggest declines in months last week, after high-profile U.S. bank failures beginning March 10 and a crisis at Europe’s Credit Suisse culminated in an emergency rescue over the weekend. Natural gas prices can remain in green as it can move in range of 185-195.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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