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

Bullions counter may remain on volatile path amid mixed fundamentals. Recently dollar index retreated as minutes of the U.S. Federal Reserve’s latest policy meeting signalled slower interest rate hikes. Gold can trade in range of 52550-52850 while silver can move in range of 61800-62400.

Report Overview

BULLIONS

Bullions counter may remain on volatile path amid mixed fundamentals. Recently dollar index retreated as minutes of the U.S. Federal Reserve’s latest policy meeting signaled slower interest rate hikes. Gold can trade in range of 52550-52850 while silver can move in range of 61800-62400. A majority of traders expect a 50 bps rate increase at the Fed’s December meeting, while chances of 75 bps hike were pegged at about 34.5%. High interest rates have kept a leash on gold’s traditional status as a hedge against high inflation and other uncertainties this year, as they translate into higher opportunity cost to hold the non-yielding asset. Holdings of the largest gold-backed exchange-traded-fund, New York’s SPDR Gold Trust have shed about 68 tonnes since the beginning of this year.

BASE METALS

In base metal counter, Copper can move in narrow range of 675-682. On the fundamentals, the LME copper inventories fell 1,375 mt to 90,150 mt on November 24, and the total inventory remained low. Consumption in the market outlook will continue to be weak. Overall, the current contradiction between supply and demand was not obvious, but the terminal demand at the end of the year will not boom. Zinc may recover towards 267 while taking support near 258. Aluminum can move on sideways path in range of 205-212. Aluminium production in Sichuan and Guangxi gradually resumed. However, the pandemic-induced shipment delays allowed the domestic aluminium ingot social inventories to hit a new low.

ENERGY: Crude oil may continue its downside momentum as it can move lower towards 6300 while taking resistance near 6550.Prices are under pressure as Chinese demand and expectations a high price cap planned by the Group of Seven (G7) nations on Russian oil will keep supply flowing. Russian President Vladimir Putin has said Moscow will not supply oil and gas to any countries that join in imposing the price cap, which the Kremlin reiterated on Thursday. Trading is expected to remain cautious ahead of an agreement on the price cap, due to come into effect on Dec. 5 when an EU ban on Russian crude kicks off, and ahead of the next meeting of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, on Dec. 4. Natural gas prices may move further higher as it can test 640 while taking support near 600.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disclosure

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