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GLOBAL MARKET ROUND UP

Commodity market traded slightly higher on Tuesday following stronger dollar. HGold rebounded from a two-year low after the USD slipped from its recent highs. Traders are also digesting signs of easing price pressures, after a fall in US durable goods in August. Bargain buying has been seen in the gold following festive demand and lower domestic prices.

Selling pressure in the base metals sector eased as the rise in USD abated. Copper managed to end the session higher after the DXY eased back from its recent record high.

Norsk Hydro said it will cut annual aluminium production capacity by as much as 143,300t at two of its plans in Norway in response to reduced demand in Europe.

Oil futures climbed on Tuesday, with prices finding support a day after settling at their lowest price since January, as Hurricane Ian leads to the slowdown of crude production in the Gulf of Mexico. West Texas Intermediate crude for November delivery rose $1.79, or 2.3%, to settle at $78.50 a barrel on the New York Mercantile Exchange.

Asian equities followed US shares lower after hawkish comments from Federal Reserve officials, while the dollar touched a fresh high after a White House official ruled out a currency agreement to weaken the greenback. US futures dropped after the S&P 500 capped its worst run since early 2020.

Commodity Daily BULLION

COMEX Gold and silver prices are trading flat as the dollar is trading near 20-year highs amid growing concerns over a looming economic slowdown. The dollar has surged this year on an extremely hawkish stance adopted by the U.S. Federal Reserve, with rising interestrates making the currency a more attractive haven than gold.

Bullion prices have slumped over 27% from a 2022 high hit in the initial days of the Russia-Ukraine conflict. Prices are expected to weaken further in the near term.

Intraday Supports for the MCX Gold Oct Future are seen at 49250 and 49000 odd levels, while resistances are seen at 49690 and 50000 odd levels

COMEX Gold Spot

COMEX Silver Spot

Commodity Daily| ENERGY

Crude oil rallied after reports that Russia is pushing for the OPEC+ alliance to cut production. The group of oil-producing nations is due to meet early next month to discuss its production plans. They already announced a cut to output for October by 100kb/d and have warned of further reductions amid falling prices. There have been reports that Russia is pushing for a cut to an output of at least 1mb/d.

We expect crude oil could trade side way to lower amid risk-off sentiments and slower demand. MCX Crude Oil October contract support has support near 6300 and resistance at 6590. MCX Natural gas October contract has resistance at 594 and support at 545.

MCX Crude Oil Oct 2022

MCX Natural Gas Oct 2022

Commodity Daily| BASE METALS

Among industrial metals, copper prices kept to a tight range. Weakening economic prints from China, the world’s biggest copper importer, have been of particular concern to markets, as have signs ofslowing industrial activity in Europe and the U.S.

Focus this week is on Chinese manufacturing data, due on Friday, which is expected to show a further decline in activity.

MCX Copper Oct Future is near crucial support of 625, below which could result in a breakdown from consolidation. Below 625, underlying could drag towards next support of 600. Intraday resistances for underlying are seen at 636 and 640.

LME Copper 3M Forward

LME Zinc 3M Forward

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