Commodity Morning Trading Guide | Globe Capital Market LTD.
Commodity Morning Trading Guide

Bullions counter may trade on firm path as the U.S. dollar and bond yields touched multi-month lows on mounting bets that the U.S. central bank will start to cut interest rates as early as March next year.

Report Overview


Bullions counter may trade on firm path as the U.S. dollar and bond yields touched multi-month lows on mounting bets that the U.S. central bank will start to cut interest rates as early as March next year. Gold can move in range of 63500-64000 while silver also can move in range of 75000-76200. Bullion looked set to log its best year in three with a 14% gain, as the war in Ukraine and tensions in the Middle East boosted safe-haven inflows and bets of U.S. rate cuts lifted the metal’s appeal. Bets for interest rate cuts from the U.S. Federal Reserve have firmed following cooler inflation data, with traders now pricing in an 88% chance of monetary policy easing in March, according to the CME FedWatch tool. The dollar index slipped to a five-month low and was set for its worst yearly performance since 2020, while benchmark U.S. 10-year bond yields languished near their lowest level since July.


In base metal counter, Copper can move in range of 735-745. Prices of copper were steady on Wednesday, supported by a weak dollar and concern over tight global raw material supplies. Russia’s Nornickel sees the global copper market largely balanced and expanding incrementally, by 2%-3% this year and in 2024, and expects it to reach cumulative growth of 20% by 2035 as development of electric transport, electricity transmission grids and renewable power generation will push demand up to 30 million mt/year, from 24.8 million mt in 2022. Aluminium may trade in range of 208-215. Copper demand in 2023 could increase by 2% year on year to 25.3 million mt against the backdrop of an expected acceleration in Chinese economic activity, and could grow by a further 3% in 2024 to 26 million mt, according to Nornickel. Mine and refined copper production this year will inch up 2% and 3%, respectively.


Crude oil may remain on volatile path as it may move in range of 6100-6300. Oil prices rose as persistent fears over escalating tensions in the Middle East outweighed easing concerns about transport disruptions as some global shipping firms said they were returning to the Red Sea route. Concerns about shipping in the Red Sea have eased, but continued worries about tensions in the Middle East, especially on Iran’s involvement in the region, make it difficult to sell further. Danish shipping company Maersk said it has scheduled several dozen container vessels to travel via the Suez Canal and Red Sea in the coming weeks after calling a temporary halt to those routes this month after attacks by Yemen’s Iran-backed Houthi militia. U.S. oil inventories rose by 1.84 million barrels in the week to Dec. 22, according to market sources citing American Petroleum Institute figures on Wednesday. Natural gas prices may witness some lower level buying as it can move in range of 202-212.




















































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