Commodity Morning Trading Guide | Globe Capital
22-Nov-2022
Commodity Morning Trading Guide

Bullions counter may witness some upside movement as softer dollar index supported its prices with the focus turning to minutes from the U.S. Federal Reserve’s latest meeting for clues on future rate hikes. Gold can trade on volatile path in range of 52200-52600 while silver can move in range of 60900-61400.

Report Overview

BULLIONS

Bullions counter may witness some upside movement as softer dollar index supported its prices with the focus turning to minutes from the U.S. Federal Reserve’s latest meeting for clues on future rate hikes. Gold can trade on volatile path in range of 52200-52600 while silver can move in range of 60900-61400. The Fed’s November meeting minutes are due on Wednesday, with most traders betting on a 50-basis point hike in December. Chances of a 75-bps hike were pegged at 19% following recent comments by Fed officials. Cleveland Fed President Loretta Mester said the central bank can downshift to smaller rate hike increments from next month as it fine-tunes its policy.

BASE METALS

In base metal counter, Copper can trade with weaker path as it can test 660 while taking resistance near 672. LME inventory increased by another 1,500 mt yesterday, and the proportion of registered warrants rose while that of cancelled warrants continued to fall. In the terms of consumption, the decline in copper prices boosted downstream purchases on rigid demand, but the terminal consumption did not improve. Zinc may slip lower as it can test 255 while taking resistance near 267. On the consumption side, the boost enabled by loosening pandemic controls in China is worth attention as the confirmed covid cases have been rising recently, which is likely to shadow the short-term market outlook. Aluminum can move on sideways path in range of 203-210.

ENERGY: Crude oil may continue its downside momentum as it can move lower towards 6450 while taking resistance near 6700. Recently Saudi Arabia denied a media report that it was discussing an increase in oil supply with OPEC and its allies. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) recently cut production targets and the energy minister of de facto leader Saudi Arabia was quoted this month as saying the group will remain cautious on oil production because of uncertainty about the global economy. The front-month Brent crude futures spread narrowed sharply last week, while WTI flipped into contango, reflecting easing supply concerns. Natural gas prices may open on negative path as it can test 520 while taking resistance near 560.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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