IGI Logo

GLOBAL MARKET ROUND UP

Commodity prices traded mixed on Tuesday with most of the commodities in non-agro segment kept lower trading range ahead of US FOMC meeting. Bullion prices followed mixed global cues with firm dollar index. Crude oil prices fluctuated on eased China restriction and demand growth outlook. Base metals held steady awaiting fresh triggers despite of tight supplies.

U.S. stocks finished lower on Tuesday as Treasury yields climbed and traders appeared skittish about opening new long positions ahead of the conclusion of the Federal Reserve’s September policy meeting. Investors grapple not just with whether the central bank will make a 75 basis point rate increase or lift rates by 100 points, but also how high the Fed will signal rates will go in the future. The meeting started Tuesday and will conclude on Wednesday..

US treasury yields, which move opposite to price, continued to march higher, with the rate on the 10-year note jumping 5 basis points to 3.538% to its highest level in more than a decade. The yield on the 2-year note briefly passed the 4% threshold.

Commodity Daily BULLION

Bullion prices traded steady on Wednesday with gold prices at COMEX were trading near $1663 per ounce while spot silver prices at COMEX were trading marginal up near $19.30 per ounce in the morning trade. Bullion prices kept range bound trading as market is awaiting US FED decision over interest rate. A rate hike of 75 bps is already discounted in the market while larger rate hike will be a surprise.

We expect bullion prices to trade sideways to down for the day. MCX Gold Oct resistance for the day at Rs. 49600 per 10 grams with support at Rs. 48800 per 10 grams. MCX Silver Dec resistance forthe day at Rs. 58500 with support at Rs. 55200.

COMEX Gold Spot

 COMEX Silver Spot

Commodity Daily ENERGY

Crude oil prices traded firm with NYMEX WTI crude oil prices were trading near $84.17 per barrel for the day. Crude Oil prices ticked up on Wednesday on supply concerns, but expectations of another aggressive U.S. interest rate hike capped gains amid investor concerns it could lead to a recession and hurt fuel demand

We expect crude oil prices to trade sideways to up for the day. MCX Crude Oil October support lies at Rs. 6590 per barrel with resistance at Rs. 6910 per barrel. MCX Natural gas September contract is expected to trade firm with support at Rs. 605 and resistance at Rs. 640.

MCX Crude Oil Sep 2022

MCX Natural Gas Sep 2022

Commodity Daily BASE METALS

Base metals prices traded firm on Wednesday with most of the metals kept mixed trading on muted global cues. Copper, aluminum and zinc rose modestly before a Federal Reserve rate decision that could be pivotal for demand. Metal prices have been fluctuating near multi-month lows as higher interest rates spur slowdown angst, Europe’s energy crisis worsens and China struggles to move beyond Covid-19

Base metals may trade sideways to up for the day. MCX Copper Sept support lies at Rs. 645 and resistance at Rs. 660. MCX Zinc Sept support lies at Rs. 278, resistance at Rs. 287. MCX Aluminium Sept support lies at Rs. 192 with resistance at Rs. 205.

LME Copper 3M Forward

LME Zinc 3M Forward

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer