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GLOBAL MARKET ROUND UP

* Commodity prices traded firm on Monday with most of the commodities in non-agro segment witnessed recovery in the evening session. Bullion prices pared losses on safe haven buying in absence of US markets. Crude oil prices traded higher on OPEC plus output cut. Base metals traded firm on softer dollar.

* European stocks slumped, the euro fell (below 99 cents for the first time in twenty years) and natural gas skyrocketed after Russia said it was cutting off gas supplies through the Nord Stream 1 pipeline indefinitely.

* China’s announcement of a cut in the amount of foreign-exchange deposits banks must set aside as reserves. The People’s Bank of China set the daily reference rate for the yuan at a stronger-than-expected level for a 10th day, the longest run since 2019. Financial institutions will need to hold 6% of their foreign-currency deposits in reserves starting from Sept. 15, the People’s Bank of China said in a statement on Monday -- lower than the current level of 8%.

Commodity Daily BULLION

Bullion prices traded firm on Tuesday with gold prices at COMEX were trading 0.35% up near $1715 per ounce while spot silver prices at COMEX rose by 0.67% to $18.25 per ounce in the morning trade. Bullion prices rebounded on safe haven buying with surge in energy cost in Europe after Russia shut supply of Natural Gas from key pipeline. The slowdown fears in Eurozone economy has boosted buying in the yellow metal along with softer dollar.

We expect bullion prices to trade sideways to up for the day. MCX Gold Oct resistance for the day at Rs. 50900 per 10 grams with support at Rs. 50200 per 10 grams. MCX Silver Dec resistance forthe day at Rs. 54500 with support at Rs. 52800

COMEX Gold Spot

 COMEX Silver Spot

Commodity Daily ENERGY

Crude oil prices traded higher with NYMEX WTI crude oil prices surged by more than 2% near $88.70 per barrel for the day. Crude Oil prices as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices. The move was seen as a largely symbolic move to bolster prices after the market's recent slide. Oil prices are down substantially from 14-year highs hit earlier in the year, as concerns over slowing crude demand offsetsupply shocks from the Russia-Ukraine conflict.

We expect crude oil prices to trade sideways to up for the day. MCX Crude Oil September support lies at Rs. 6950 per barrel with resistance at Rs. 7230 per barrel. MCX Natural gas September contract is expected to trade weak with support at Rs. 670 and resistance at Rs. 720.

MCX Crude Oil Sep 2022

MCX Natural Gas Sep 2022

Commodity Daily BASE METALS

Base metals prices traded firm on Tuesday with most of the metals kept positive trading in the morning trade. Copper rose for a third day, leading most industrial metals higher, amid a weakening dollar and concerns over low global inventories. China’s aluminium output has been disrupted during summer amid drought-driven power rationing along the Yangtze River. On the supply side, global metals inventories have been nearing historical lows, continuing to fuel concerns of a possible squeeze

Base metals may trade sideways to up for the day. MCX Copper Sept support lies at Rs. 632 and resistance at Rs. 654. MCX Zinc Sept support lies at Rs. 285, resistance at Rs. 294. MCX Aluminium Sept support lies at Rs. 198 with resistance at Rs. 207.

LME Copper 3M Forward

LME Zinc 3M Forward

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