Commodity Morning Trading Guide | Globe Capital
30-Aug-2022
Commodity Morning Trading Guide

Bullion counter may continue to remain on weaker side as surge in greenback amid fear of faster rise in interest rates from Federal Reserve Chair Jerome Powell’s to tame rising inflation is keeping upside capped. Gold (Oct) can test 50800 while facing resistance near 51300 in domestic markets.

Report Overview

BULLIONS

Bullion counter may continue to remain on weaker side as surge in greenback amid fear of faster rise in interest rates from Federal Reserve Chair Jerome Powell’s to tame rising inflation is keeping upside capped. Gold (Oct) can test 50800 while facing resistance near 51300 in domestic markets. Silver (Dec) can tumble towards 54400 while taking resistance near 55500. SPDR Gold Trust holdings fell 0.38% to 980.61 tonnes on Monday from 984.38 tonnes on Friday.  Minneapolis Fed President Neel Kashkari said on Monday he felt the stock market selloff that followed Powell’s hawkish speech on Friday shows investors understand the central bank is serious about reducing inflation.

BASE METALS

Copper can trade on lower path as it can test 655 in MCX on weak industrial data from China which is adding to red metal’s losses. Meanwhile focus is now on Chinese PMI data due later this week, which is likely to sway prices further. In July 2022, China’s exports of copper tube, refined copper tube and refined copper tube accessories stood at 32,300 mt, 19,000 mt and 2,100 mt respectively. China imports of copper tube, refined copper tube and refined copper tube accessories stood at 2,700 mt, 2,200 mt, and 21 mt respectively. Zinc may head lower 305 while taking resistance near 320 in MCX. Aluminum can dip lower towards 208 in MCX.

ENERGY

Crude oil may remain in green as it can test 7850 in MCX while taking support near 7500 on expectation of output cut by OPEC+ countries and conflict in Libya.  OPEC+, comprising OPEC, Russia and allied producers, meets to set policy on Sept. 5. Unrest in Libya’s capital at the weekend, resulting in 32 deaths, sparked concern that the country could slide into a full-blown conflict and disrupt in oil supply from the OPEC nation. Meanwhile Crude inventory in the U.S. emergency reserves fell by 3.1 million barrels in the week to Aug. 26 to the lowest since December 1984, according to data from the Department of Energy. Natural gas prices can dip lower as it can test 720 while taking resistance near 750 in MCX. A resumption of gas flows from the Nord Stream 1 pipeline could add to further natural price declines though there is no indication of when that may happen as the pipeline deals with reported maintenance issues.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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