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GLOBAL MARKET ROUND UP

Commodities have opened the fourth quarter with a roar, with prices on course for the best weekly showing sinceMarch after OPEC+ agreed to chop oil supply.

Gold headed for the largest weekly gain since March ahead of key US jobs data that will shape expectations about how much more tightening is yet to come fromthe Federal Reserve.

Oil headed for the biggest weekly gain since early March as OPEC+ put the market on course for further tightening ahead of winter. West Texas Intermediate futures traded near $89 a barrel on Friday and are up around 11% for the week.

Stocks in Asia are poised to open lower following declines in the US ahead of a pivotal monthly payrolls report. The latest hawkish comments fromFed officials committed to crushing inflation with rate hikes also strengthened the greenback and Treasury yields.

The US monthly jobs report is forecast to show employers added the fewest jobs in a month since late 2020. Meanwhile, Federal Reserve officials stressed support for extending the run of interest-rate hikes, highlighting the need to quash stubborn inflation.

Commodity Daily BULLION

Gold headed for the largest weekly gain since March ahead of key US jobs data that will shape expectations about how much more tightening is yetto come from the Federal Reserve.

Gold’s prospects are tilted to the downside as the macro backdrop remains susceptible to the Fed’s rate-hike path. Even if we were to see physical buyers and jewellers prop up demand ahead of Diwali and other festivals in India, any gainsin spot prices are likely to be short-lived.

Trading Strategy:

Bullions are expected to consolidate in the narrow range after witnessing a parabolic up move this week. MCX Gold December future has resistance at 52270 and support at 51480. MCX silver has resistance at 62370 and support at 59400.

Commodity Daily ENERGY

Crude oil extended gains as the fallout from OPEC’s aggressive output cut continued. At a hastily arrange an in-person meeting in Vienna, the OPEC+ alliance agreed to cut current production quotas by 2mb/d. Due to some membersstill below current quotas, the effective cut is close to half that level.

President Biden said the administration is now weighing up its response. Options include a further release of oil fromthe strategic reserve.

Despite the bullish tone the move created, Saudi Arabia defied expectations on pricing for its own crude. It left the premium on its Arab light grade unchanged atUSD5.85/bbl.

Trading Strategy:

MCX Crude oil October future heads for the biggest weekly gains after March 03, 2022. It has resistance at 7580 and support at 7070 with bullish bias.

Commodity Daily BASE METALS

Base metals prices witnessed profit booking during the second half on Thursday with Aluminium and Copper ending with losses. Fall in the US markets also dampened the sentiment for Base metal prices. The outlook for the red metal is under pressure from weakening economic activity across the globe, with major producer Chile also slashing its price forecastrecently

Trading Strategy:

MCX Copper Oct support lies at Rs. 650 and resistance at Rs. 664. MCX Zinc Oct support lies at Rs. 278, resistance at Rs. 288. MCX Aluminium Octsupport lies at Rs. 203 with resistance at Rs. 210. Base metals prices, after the initial fall, are likely to recover from the lower levels.

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