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

Bullions counter may continue its upside momentum as headed for a second week of gains, as some weak U.S. economic data fanned expectations that the Federal Reserve might ease the aggressive pace of raising interest rates beginning December. Gold can move towards 50900 while taking support near 50600. While Silver can test 59500 while taking support near 58000.

Report Overview

BULLIONS

Bullions counter may continue its upside momentum as headed for a second week of gains, as some weak U.S. economic data fanned expectations that the Federal Reserve might ease the aggressive pace of raising interest rates beginning December. Gold can move towards 50900 while taking support near 50600. While Silver can test 59500 while taking support near 58000. The U.S. economy rebounded strongly in the third quarter amid a shrinking trade deficit, but the data overstated the nation’s economic health as domestic demand was the weakest in two years. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.34% to 925.20 tonnes on Thursday. The European Central Bank raised interest rates by 75 basis points on Thursday and put the reduction of its bloated balance sheet on the agenda, but said “substantial” progress had already been made in its bid to fight off a historic surge in inflation.

BASE METALS

In base metal counter, Copper can trade with weak bias as it can move lower towards 655 while taking resistance near 665. On the fundamentals, with the gradual consumption of delivered warrants and imported copper, and the subsequent delay in the arrival of imported copper at ports, the spots available in the market during the week were scarce. On the demand side, since copper prices were still at a high level and end-consumer demand was insufficient, downstream processing companies only purchased on rigid demand, and spot transactions were average. Zinc may remain open on weak bias as it can test 262 while taking resistance near 273.Aluminum can trade lower as it can test 195. Fears of sanctions against Rusal resulted in large fluctuations in LME aluminium. The domestic fundamentals are relatively weak. Although the inventory of aluminium ingots remains low, the destocking was driven by decrease in arrivals rather than improvement of consumption.

ENERGY

Crude oil may open in red as it can test 7150 while taking resistance near 7400 after China, the world’s top crude oil importer, widened its COVID-19 curbs. Chinese cities on Thursday doubled down on COVID-19 curbs, sealing up buildings, locking down districts and throwing millions into distress in a scramble to halt widening outbreaks. China reported 1,506 new COVID-19 infections on Oct. 27, the National Health Commission said on Friday, up from 1,264 new cases a day earlier. The widening premium for Brent over WTI is being stoked by signs of a rise in refinery runs in China, Europe’s hunger for crude ahead of the Russian oil embargo, and pending supply cuts by the Organization of Petroleum Exporting Countries (OPEC) and allies. Natural gas prices may dip towards 460 in MCX.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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