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GLOBAL MARKET ROUND UP

U.S. Gold prices fell to an over three-week low as expectations of more Federal Reserve interest rate hikes pushed up U.S. Treasury yields and caused a steep selloff in metal markets. A strong dollar pressured bullion prices. U.S. Gold is now about $10 away from revisiting its lowestlevel for the year.

Copper prices fell to an over three-week low even amid signs that supply will tighten in the near term. Middling production reports from major miners BHP Group Ltd and Rio Tinto Ltd also fed the metal’slossesthis week, as both miners warned of demand headwinds.

The International Copper Study Group expects the global refined copper market to be in a 155,000-ton surplus next year, the organization said. The market is expected to be in a 325,000-ton deficit this year, with usage growing 2.2% overall.

Oil held gains as the market shrugged off measures from US President Joe Biden to tame rising energy prices that have fueled inflation. West Texas Intermediate for December traded near $85 a barrel after rising 3% on Wednesday.

Stocks slumped in Asia and bond yields spiked higher amid concern thatstrong inflation and hawkish monetary policy will furtherslow the global economy.

Commodity Daily BULLION

U.S. Gold prices fell to an over three-week low as expectations of more Federal Reserve interest rate hikes pushed up U.S. Treasury yields and caused a steep selloff in metal markets.

U.S. Treasury yields are currently at their highest level since the 2008 financial crisis as the prospect of more interest rate hikes saw investors dumping bonds. This also boosted the dollar, which appeared set to reverse most of its recentlosses.

Trading Strategy: MCX Gold December Future reached to the lowest level since 30 Sep 2022. From the recent high of 52120, MCX gold has slipped to 50199 in a short span of time. The trend has turned weak for the Gold and the next supports are seen at 49875 and 49500 odd levels. MCX silver spent a third consecutive session in the narrow range. Supportfor Silver Dec Future isseen at 54900. Resistance for the same isseen at 57500.

Commodity Daily ENERGY

Oil held gains as the market shrugged off measures from US President Joe Biden to tame rising energy prices that have fueled inflation. West Texas Intermediate for December traded near $85 a barrel after rising 3% on Wednesday.

US crude inventories fell by 1.73 million barrels last week, according to data from the Energy Information Administration released Wednesday. The nation is down to 25 days of dieselsupply, the lowest level since 2008, as consumption of the fuelsurges heading into winter, the EIA figuresshow.

Trading Strategy: MCX crude oil Nov. fut. is expected to trade positive. It has resistance at 7185 and support at 6740. MCX Natural Gas is expected to trade lower with downside support at 450 and 425 while resistance at 503.

Commodity Daily BASE METALS

Base metal traded lower after Rio Tinto Plc warned on the global outlook on Tuesday, its bigger rival BHP Group also delivered some cautious commentary on prospects.

Industrial metal prices ended mixed on Wednesday with Zinc and Aluminium ending the day with 1% and 1.5% gains on MCX respectively while Copper ended in the red marginally. A sharp rise in the U.S. treasury yields, which are currently at their highest level since the 2008 financial crisis and the weak stock market dampened the sentiment for Metals.

Trading Strategy: MCX Copper’s Technical set-up looks weak as it has closed below the important support of 645. Immediate support is placed at Rs. 636 and resistance at Rs. 645 and 651. MCX Zinc Oct support lies at Rs. 265, resistance at Rs. 274. MCX Aluminium Oct support lies at Rs. 191 with resistance at Rs. 202. Base metals prices are likely to recover after initial weakness.

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