IGI Logo

GLOBAL MARKET ROUND UP

Comex Gold prices corrected by 0.25% on Monday as traders unwinding their position before FOMC meeting scheduled on 01st Feb. However, downside capped by expectation of slower rate hike and fear of recession support precious metals at lower levels

Investor expectations for a slowdown in Fed rate hikes grew after the Fed's preferred inflation gauge U.S. consumer spending fell for a secondstraight month in December, putting the economy on a lower growth path heading into 2023.

Meanwhile, benchmark U.S. 10-year bond yields pull back and traded near two-week highs, limiting gold's rise. Investors are pricing in a 50- bps rate hike from the Bank of England and the European Central Bank, which also have policy meetings this week.

Crude Oil price tumbled nearly 2.0% on Monday on back of the threat of recession and continued Russian crude flows. Russia continues to supply the global market with its oil despite a European Union ban and G7 price cap imposed, which pressured prices

Base metals price traded weak on Monday as tepid physical demand from top metals consumer China. In most of base metals physical demand remained tepid prior to the Lunar New Year holiday as shown by falling premiums. However, down side capped by lower inventory and supply concern.

Commodity Daily BULLION

MCX GOLD Apr Fut marginally declined on Monday tacking cues from Comex prices. Gold price should trade within narrow range as market participants held back from making large bets ahead of the U.S. Federal Reserve policy decision. Meanwhile SPDR Gold Trust , the world's largest gold-backed exchange-traded fund holdings fell 0.2% to 917.05 tones on Monday.

Trading Strategy: MCX Gold Apr Fut have strong resistance at 57500 until price trades below this level, further rally in price will not see and selling pressure likely to see near this area. While downside extend to 56520/56350 levels once price fall below 56780 level. MCX Silver Mar Fut rangebound trade continued on Monday, Area around 69300 acts as major resistance zone until price trade below this level buying should avoid. A fall is extended to 67100/66700 levels below 68750 level.

Commodity Daily ENERGY

Crude Oil price opened higher on Monday supported by tensions in the Middle East following a drone attack in Iran and as Beijing pledged over the weekend to promote a consumption recovery which would support fuel demand. However price failed to sustain gained and turn lower on back of expectation of supply increased from Russia. Natural Gas price bearish trend extend on Monday price declined by 4.27% on Monday as weak demand and higher supply continues weighed on prices.

Trading Strategy: MCX Crude Feb Fut should trade with negative side and bearish trend extend to 6280/6230 level once price will break support of 6350 level. Upside looks limited until price trade below 6540 level. MCX Natural Gas Feb Fut have strong resistance at 233.80/240.0 successfully cross this level push prices to next resistance level at 260 on short covering move. Overall trend still bearish and fall will extend to 219/206 levels once price break support of 221.0 levels.

Commodity Daily| BASE METALS

MCX Copper price corrected by 0.24 on Monday as traders trim their position before US Fed meeting. On Macro front, China's economic activity pull back to growth in January, purchasing managers' index, which measures manufacturing activity, rose to 50.1 from 47.0 in December after a wave of COVID-19 infection passed through the country faster than expected following abandonment of pandemic controls.

Trading Strategy: MCX Copper Feb Fut traded in range on Monday with negative bias, however price managed to sustain above 777 level, if price fall below this level than it will likely to retest 772/766 supports levels. Upside looks limited for short term. MCX Zinc Feb Fut declined by 0.40% on Monday, Technically Zinc price should trade in range of 293 to 301 in short term, once price break support of 293 it will fall towards 288/285 levels.

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