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GLOBAL MARKET ROUND UP

Gold and copper rose against the dollar as Treasury yields extended declines, with traders looking to next week’s Federal Reserve meeting for clues on whether the end is near for aggressivemonetary-tightening measures.

Crude oil gained amid signs of stronger demand for refined petroleum products. EIA’s weekly reportshowed that inventories of gasoline fell 1,478kbbl last week, while distillate stocksremained at record lows.

Copper jumped, boosted by a weaker dollar as traders assessed the possibility of the Federal Reserve slowing down the pace of interest-rate hikes. The greenback dropped to a three-week low, while Treasury yields also declined, supporting the appeal of commodities priced in the dollar

Chile’s government moderated proposed tax increases for copper mining companies, reducing and simplifying rates in a bid to maintain competitiveness following complaints by the industry.

Aluminum traders are making bold bets in the options market to position for price spikes later this year, as the metals world weighs the possibility of restrictions on Russian supplies.

Global equities advanced Thursday as Chinese shares extended a rebound and US stock futures overcame earnings worries from tech giants. The yield on 10- year Treasuries was back near the key 4% threshold.

Commodity Daily BULLION

Gold remained steady in Asia as the market awaits next week’s Federal Reserve meeting to get a gist of the central bank’s future rate-hike path. The US central bank’s aggressive monetary tightening this year has pushed up the dollar and pressured gold. The traditional haven is now down about 9% since the start of the year and haslost almost 20% of its value since its March peak.

Trading Strategy: MCX Silver Dec Future has strong support around 58000, where a downward sloping trendline on the daily chart is placed. The higher top and higher bottom formations on a Silver and Gold chart are well intact, and therefore we advise to remain bullish on gold and silver in today’s session. Supports for Gold dec fut. are seen at 50700 and 50175, while resistances are seen at 51360 and 52100odd levels.

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Commodity Daily ENERGY

WTI Oil rose for the third day after the US reported record exports of crude and fuel and a softer dollar made commodities more attractive. Oil climbed above $88 a barrel after gaining almost 4% over the prior two sessions. Total US petroleum exports hit 11.4 million barrels a day last week, government data showed. The surge came with domestic fuel inventories at historic seasonal lows, highlighting a tightening supply outlook. The weaker dollar also helped buoy crude.

Trading Strategy: MCX crude oil Nov. fut. Closed above the medium-term moving averages. It has now resistance at 7550 and support at 7150. MCX Natural Gas Nov. fut. Took support around 450 and recovered in the last three days. It hasresistance at 550 and support at 470.

Commodity Daily BASE METALS

Industrial metal prices ended with sharp gains on Wednesday with Copper, Zinc and Aluminium ending the day on MCX with 1-3% gains. Prices of the base metal rallied sharply asthe dollar retreated on growing expectations that the Federal Reserve will soften its hawkish stance this year. The dollar index fell over 1% on Wednesday, as investors bet that a slowdown in U.S. economic growth will push the Fed into softening its pace of interest rate hikes this year. Treasury yields also came under pressure. The greenback is now trading at its weakest level in over one month and is nearly 5% off a twenty-year high hit in September. Copper rose sharply as demand is expected to heat up as electrification gains traction in the coming years.

Trading Strategy: MCX Copper’s Technical set-up turned strong as it closed above the important resistance of 651. Immediate support is placed at Rs. 651 and resistance at Rs. 666 and 670. MCX Zinc Nov support lies at Rs. 268, resistance at Rs. 277. MCX Aluminium Nov support lies at Rs. 201 with resistance at Rs. 210. Base metals prices are likely to trade firm today

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