Commodity Morning Trading Guide | Globe Capital
28-Dec-2022
Commodity Morning Trading Guide

Bullions counter can witness some profit booking at higher levels amid bounce back in greenback. Gold can move in range of 54600-55000 while Silver also can move in range of 69000-70000. The dollar index edged up 0.1%, making greenback-priced gold more expensive for overseas buyers, while benchmark 10-year yields slipped from the over one-month highs hit in the previous session.

Report Overview

BULLIONS

Bullions counter can witness some profit booking at higher levels amid bounce back in greenback. Gold can move in range of 54600-55000 while Silver also can move in range of 69000-70000. The dollar index edged up 0.1%, making greenback-priced gold more expensive for overseas buyers, while benchmark 10-year yields slipped from the over one-month highs hit in the previous session. Gold jumped nearly $200 from a more-than-two-year low in late September as the dollar’s appeal was dented by expectations that the U.S. Federal Reserve would slow its pace of interest rate hikes. The Fed slowed its pace of rate hikes to 50 basis points (bps) in December after four consecutive increases of 75 bps each. However, Fed Chair Jerome Powell has warned that the Fed will lift rates further next year.

BASE METALS

In base metal counter, Copper can trade higher in range of 720-740. In terms of fundamentals, domestic inventory accumulated slightly on Monday, but the inventory in Guangdong was still low, mainly due to small arrivals. Zinc may move on mixed path as it can move in range of 270-280. Aluminum can in narrow range of 207-214.  On the fundamentals, the domestic aluminium supply growth is likely to fall short of expectations amid power rationing in south-west China. On the consumption side, the downstream processing sectors were in the seasonal low, and the operating rates were further weighed on by the spiking number of covid-infected employees. The aluminium social inventory was still at a low level despite the mild accumulation.

ENERGY: Crude oil may trade on subdued path as it can test 6500 while taking resistance near 6700 in MCX. Meanwhile the hopes for a boost to demand for fuel in China come as the world’s second-biggest economy moves towards reopen its borders next month after three years of stringent curbs on movement and businesses to counter the spread of COVID. Prices were also supported by news that Russia aims to ban oil sales from Feb. 1 to countries that abide by a G7 price cap imposed on Dec. 5, according to a decree by President Vladimir Putin. Elsewhere U.S. output has been disrupted by an Arctic blast sending temperatures well below freezing, cutting oil and gas production from North Dakota and Texas. Oil refiners on Tuesday were working to resume operations at a dozen facilities knocked offline by the deep freeze, a recovery that in some cases will stretch into January. Natural gas prices can open on negative path as it can test 400 while taking resistance near 420.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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