- Bullions counter may witness volatile movement as gold prices regained some lost ground on Tuesday, rising above the $4,000-per-ounce level as a weaker dollar and expectations of further Federal Reserve rate cuts outweighed pressure from signs of a thaw in U.S.-China trade tensions.
Commodity Morning Trading Guide
Report Overview
BULLIONS
- Bullions counter may witness volatile movement as gold prices regained some lost ground on Tuesday, rising above the $4,000-per-ounce level as a weaker dollar and expectations of further Federal Reserve rate cuts outweighed pressure from signs of a thaw in U.S.-China trade tensions.
- Overall Gold (Dec) can move in range of 119500-122000 while silver (Dec) can move in range of 144000-147000.
- On Sunday, top Chinese and U.S. economic officials hashed out the framework of a trade deal for U.S. President Donald Trump and his Chinese counterpart Xi Jinping to decide on later this week.
- Trump said he thought a deal would be reached with China, and announced a flurry of deals on trade and critical minerals in Malaysia with four Southeast Asian nations during the first stop of his five-day Asia trip.
- With the Fed widely expected to cut interest rates at the end of its policy meeting on Wednesday, investors are awaiting any forward-looking language from Fed Chair Jerome Powell.
BASE METALS
- In base metal counter, Copper (Nov) prices can trade on volatile path as it can move in range of 990-1020.
- Benchmark copper on the London Metal Exchange hit its strongest in more than 16 months earlier in October after news about problems in mines in Indonesia, Congo and Chile.
- Aluminum (Nov) prices can trade on mixed path as it may move in range of 265-269.while Zinc (Nov) may move on upside path as it may trade in range of 298-304.
- Copper, used in power and construction and often seen as a barometer of the global economy, has gained 25% so far this year. The world’s second-biggest copper mine, Grasberg in Indonesia, suspended operations last month after mud flows flooded the site, killing seven workers.
ENERGY
- Crude oil (Nov) may trade with upside path as it can move in range of 5350-5540. Acting as a headwind for prices, OPEC+, which groups the Organization of Petroleum Exporting Countries and allies including Russia, is leaning towards another modest output boost in December, four sources familiar with the talks said. Having curbed production for several years in a bid to support the oil market, the group started reversing those cuts in April.
- Acting as a headwind for prices, OPEC+, which groups the Organization of Petroleum Exporting Countries and allies including Russia, is leaning towards another modest output boost in December, four sources familiar with the talks said. Having curbed production for several years in a bid to support the oil market, the group started reversing those cuts in April.
- Natural gas (Nov) may remain on stronger path as it can move in range of 345-362.
- Following the sanctions, Russia’s second-largest oil producer, Lukoil said on Monday it would sell its international assets. This is the most consequential action so far by a Russian company in the wake of Western sanctions over Russia’s war in Ukraine, which started in February 2022.
Disclosure
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AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZFinstock Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited, LakshyaImpex Private Limited and Launchpad Fintech Private Limited are associates of GCML.
This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.
Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.
AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZFinstock Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited, LakshyaImpex Private Limited and Launchpad Fintech Private Limited are associates of GCML.
This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.
Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.
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