Commodity Morning Trading Guide | Globe Capital Market LTD.
30-May-2024
Commodity Morning Trading Guide

Bullions counter may trade on volatile path as investors awaited a key U.S. inflation reading that could provide further insights into the Federal Reserve's policy path.

Report Overview

COMMODITY DAILY MARKET NEWS AND OUTLOOK
BULLIONS
Bullions counter may trade on volatile path as investors awaited a key U.S. inflation reading that could provide further insights into the Federal Reserve’s policy path. Overall gold can move in range of 71700-72200 while silver also can move in range of 94000-95600. U.S. economic activity continued to expand from early April through mid-May but firms grew more downbeat about the future amid weakening consumer demand while inflation continued to increase at a modest pace, a Fed survey showed, as central bankers mull how long they will need to keep interest rates at current levels. Traders’ bets signalled growing skepticism that the Fed will cut rates more than once in 2024, currently pricing in about a 61% chance of a rate cut by November, according to the CME FedWatch Tool. India’s silver imports in the first four months of the year have already surpassed the total for all of 2023.
BASE METALS
In base metal counter, Copper prices can open in red as it can move range of 887-898. Top copper importer China announced more supportive measures for the property sector this week. But traders took little cheer from the move, as they awaited more cues on how Beijing will execute and fund the new stimulus measures. Focus this week is also on key purchasing managers index data from China, due Friday, for more economic cues from the world’s biggest copper importer. According to the International Copper Study Group (ICSG), the global refined copper market showed a surplus of 125,000 metric tons in March, a decrease from February’s surplus of 191,000 metric tons. However, even with adjustments for changes in inventory in Chinese bonded warehouses, there remains a surplus in the market. Aluminium may move on mixed path as it can move in range of 246-253.
ENERGY
Crude oil may trade in red as it may move in range of 6580-6650. Oil prices were down on Thursday as the markets wait on the latest U.S. crude oil stockpiles data while resilient U.S. economic activity pointed to borrowing costs staying higher for longer in a potential blow to demand. U.S. crude oil and gasoline inventories fell last week while distillates rose, according to market sources citing American Petroleum Institute figures on Wednesday. The API figures showed crude stocks were down by 6.49 million barrels in the week ended May 24, the sources said, with gasoline inventories down by 452,000 barrels, and distillates up by 2.045 million barrels. Rising global oil inventories through April due to soft fuel demand may strengthen the case for OPEC+ producers, which include the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, to keep supply cuts in place when they meet on June 2, Natural gas can continue its downside momentum as it can move in range of 216-230.


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