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

Bullions counter may remain on upside path after minutes of the U.S. Federal Reserve’s latest policy meeting signalled slower interest rate hikes. Gold can trade in range of 52350-52800 while silver can move in range of 61800-62800. Fed fund futures are now pricing in an 85% chance of 50-basis point hike in the December meeting.

Report Overview

BULLIONS

Bullions counter may remain on upside path after minutes of the U.S. Federal Reserve’s latest policy meeting signalled slower interest rate hikes. Gold can trade in range of 52350-52800 while silver can move in range of 61800-62800. Fed fund futures are now pricing in an 85% chance of 50-basis point hike in the December meeting. Physical gold demand in Asia stayed soft this week, with premiums in top hub China easing further as fresh COVID-19 restrictions dimmed activity, while higher domestic prices put off most buyers in India.  A “substantial majority” of Fed policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes, the readout of the Nov. 1-2 meeting showed.

BASE METALS

In base metal counter, Copper can in green as it can test 685 while taking support near 673. On the fundamentals, the inventory in Guangdong fell again, and the spot premiums in south China kept rising amid scarce sources available in the market. The premiums of standard-quality copper once hit a high of 750 yuan/mt, attracting cargoes from Shanghai to Guangdong, and the premiums in Shanghai remained firm as well. Zinc may recover towards 268 while taking support near 258. Aluminum can move on sideways path in range of 206-214. There has been little disturbance to the domestic supply and demand side recently. Production resumptions of smelters remained slow, while downstream buyer still restocked as needed.

ENERGY: Crude oil may continue its downside momentum extending losses from the previous session, as fears of supply disruption eased on news that the Group of Seven (G7) nations were considering a high price cap on Russian oil. Overall it can move lower towards 6350 while taking resistance near 6650. The G7 is looking at a cap on Russian seaborne oil in the range of $65-70/bbl, according to a European official, though European Union governments have not yet agreed with each other on the matter. Oil prices also came under downward pressure after the Energy Information Administration (EIA) said on Wednesday that U.S. gasoline and distillate inventories had both risen substantially last week. Natural gas prices may move further higher as it can test 645 while taking support near 600.  Natural gas futures are testing a three-month high as worries of a possible rail strike offset forecasts calling for a drop in heating demand amid forecasts predicting milder than normal temperatures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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