Commodity Morning Trading Guide | Globe Capital
23-Sep-2022
Commodity Morning Trading Guide

Bullion counter can trade firm bias amid weak local currency rupee and rising tensions between Ukraine and Russia continue to support the prices. Gold (Oct) can test 50100 while taking support near 49600 while Silver (Dec) can move towards 59300 while taking support near 57500.

Report Overview

BULLIONS

Bullion counter can trade firm bias weak local currency rupee and rising tensions between Ukraine and Russia continue to support the prices. Gold (Oct) can test 50100 while taking support near 49600 while Silver (Dec) can move towards 59300 while taking support near 57500. The dollar index was down 0.1%, but not far from a 20-year peak scaled on Thursday in the wake of a 75-basis-point rate hike by the U.S. central bank and its hawkish outlook. The number of Americans filing new claims for unemployment benefits increased moderately last week, indicating the labour market remains tight despite the Fed’s attempt to cool demand with aggressive rate hikes.  Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.21% to 950.13 tonnes on Thursday from 952.16 tonnes on Wednesday.

BASE METALS

In base metal counter, Copper can trade on mixed path as it can move in range of 640-655. On the fundamentals, LME copper inventories have continued to increase for four consecutive days. As of yesterday, data showed that LME copper warrants added 4,775 mt to 122,775 mt. In China, the supply tightness of the spot has eased despite the current low social inventory. In particular, the recent inflow of imported goods was acceptable, which was one of the reasons for the drop in the spot premiums. Zinc may move sideways in range of 275-290 in MCX. Aluminum can witness bounce back as it can test 200 in MCX. Domestic aluminium production cuts may expand, and there are signs of recovery in demand. It is expected that SHFE aluminium will move widely in the short term.

ENERGY

Crude oil may witness range bound movement as recession fears and a stronger U.S. dollar kept prices under pressure but losses were capped by supply concerns after Moscow’s new mobilization campaign in its war with Ukraine and an apparent deadlock in talks on reviving the Iran nuclear deal. Overall it can move in range of 6700-6850. A senior U.S. State Department official said that efforts to revive the 2015 Iran nuclear deal have stalled due to Tehran’s insistence on the closure of the U.N. nuclear watchdog’s investigations, easing expectations of a resurgence of Iranian crude oil. Natural gas prices may remain on weaker path as it can test of 560 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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