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GLOBAL MARKET ROUND UP

Gold pared early gains as investors assessed the increasing risk of a global recession againstthe Federal Reserve’stightening path.

Oil climbed from a two-week low on concerns that the European Union’s latest sanctions on Russian fuel could exacerbate the market tightness that the US is trying to alleviate with additionalsales. West Texas Intermediate rose as much as 1.6%, after dropping 7% in the previousthree sessions on the US attempts to tamp down prices.

Copper slipped after inventories in Shanghai spiked by a record to ease supply stress in the top metals-consuming country, while the demand outlook continued to be pressured by the potential for more Federal Reservemonetary tightening

Asian stocks are set for a mixed open after US equities posted their first back-to-back gainsin two weeks.

US Treasuries yields fell. The dollar pared gains while the pound weakened after the Bank of England said it will start its delayed bond sales early next month, but will initially exclude the long-dated debt at the heart ofrecent market turmoil.

US factory production rose for a third month in September, and capacity utilization at those factories increased to 80%, matching the highest since 2000 and a sign that labor and supply constraints have eased.

Commodity Daily BULLION

Gold pared early gains as investors assessed the increasing risk of a global recession against the Federal Reserve’stightening path.

Delegates gathered in Lisbon for the London Bullion Market Association’s annual conference expect prices to rise to $1,830.50 an ounce by this time next year, about 10% above current levels. The survey included the world’s top traders, refiners and miners. Silver prices were predicted to boom by 50% over the same period. That was based on the average forecast of the LBMA delegatessurveyed.

Trading Strategy: Highly oversold condition on the daily chart suggesting short covering bounce in the billions. MCX Gold fut. has resistance at 50800 and support at 49950. It has retraced 61.8% of the previous upswing of 48950 to 5120. MCX Silver fut. hassupport at 54900 and resistance at 57260.

Commodity Daily ENERGY

Oil climbed from a two-week low on concerns that the European Union’s latest sanctions on Russian fuel could exacerbate themarkettightness that the US is trying to alleviate with additional sales.

The US plans to release 15 million barrels from emergency reserves and may consider significantly more this winter. President Joe Biden will announce the plan Wednesday, as high gas prices pose a risk for Democrats in next month’smidterm elections

Trading Strategy: MCX crude oil Nov. fut. Breached the support of the short-term moving averages. It has support at 6740 and 6560 while 7050 will act as resistance. MCX Natural Gas Oct. fut. as expected headed towardsthe lower line of the falling channel and now it hassupport at 450 and resistance at 520.

Commodity Daily BASE METALS

Industrial metal prices weakened on Tuesday, pressured by investor disappointment that China failed to ease its strict COVID-19 policy and as a global economic downturn dampens metals demand. LME aluminium inventories have shot up 46% this month, LME data showed. Copper and Aluminium ended the day with 1% and 2.5% losses on MCX respectively while Zinc ended in the green marginally

Trading Strategy: MCX Copper’s technical setup looks weak asit has closed below the important support of 645. Immediate support is placed at Rs. 638 and resistance at Rs. 645 and 651. MCX Zinc Octsupport lies at Rs. 261, resistance at Rs. 270. MCX AluminiumOct supportlies at Rs. 191 with resistance at Rs. 202.

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