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GLOBAL MARKET ROUND UP

Commodities extend gains as supply issues re-emerge on geopolitical worries. Sentiment across markets was boosted by further signs of easing inflationary pressures. Commodities gained as the subsequent weaker USD supported investor appetite in the sector.

Crude oil gained as focus returned to supply-side issues. Markets were on edge after it was reported that Russian missiles had crossed into Poland. However, prices spiked late in the session after a key pipeline bringing Russian oil to Eastern Europe was halted after power was cut.

Supply side issues also rattled base metal markets. Nickel prices spiked more than 7% following reports of production cutbacks at the Goro mine in New Caledonia. A leak of ‘salt-laden liquid’ from its tailings dam after heavy rains in August was the cause of the disruption.

Asian equities braced for a cautious open as investors balanced encouraging data that supported a slowdown in Federal Reserve rate hikes with reports of Russian missiles hitting Poland. Stock futures for Japan, Australia and China fell.

A slew of Fed speakers in recent days have indicated the central bank could slow the tempo of US rate rises while cautioning more work is needed to tame inflation.

Commodity Daily| BULLION

Gold steadied near a three-month high in Asia amid fears of an escalation of the war in Europe, while US data supported the view the Federal Reserve will slow its rate hikes. Bullion rose in the previous session after NATO member Poland said a lethal blast near its border with Ukraine that killed two people was caused by a Russianproduced rocket. Treasury yields slumped following the report, boosting the precious metal that’s now trading well above the $1,700 an ouncemark.

Trading Strategy: Bullions are expected to trade lower following haven demand in the dollar index after reemerging of geopolitical worries. MCX Gold Dec fut is having resistance at 53120 and support at 52100 while MCX Silver Dec fut is having resistance at 62400 and support at 60800. Near term outlook for the metal remains bullish while short-termprofit can be seen in the coming days.

Commodity Daily| ENERGY

Oil fluctuated as investors weighed a potential escalation of the war in Ukraine after Poland was struck by a Russian-made missile. WTI crude oil traded near $87 a barrel after closing 1.2% higher on Tuesday. Poland’s President Andrzej Duda said it’s likely the nation will invoke the North Atlantic Treaty Organization’s Article 4, which allows allies to raise discussions on national security threats. NATO ambassadors will hold an emergency meeting on Wednesday.

Trading Strategy: MCX crude oil Nov. fut. Has been consolidating in the range of 6750 to 7700 since the start of October. It has been facing resistance at 7720, the 200 DMA and support at 6750, the recent swing bottom. MCX natural gasNov. fut. Is having resistance at 537, the 200 DMA and support at 467, the five dayslow.

Commodity Daily| BASE METALS

Industrial metal prices ended on a weak note on Tuesday with Copper, Aluminium and ZINC falling by 0.5-1%. After a sharp rise last week, prices of the red metal fell after a spike in COVID-19 cases in China drove concerns over new lockdowns in the world’s largest copper importer. This largely offset signs of tighter copper supply in the near term, as workers at Chile’s Escondida mine, the world’slargest copper mine, announced a strike

Trading Strategy: Technical set-up remains strong for the base metals. Immediate support for MCX Copper November is placed at Rs. 689 and resistance at Rs. 701 and 707. MCX Zinc Nov support lies at Rs. 271, resistance at Rs. 281 and 285. MCX Aluminium Nov support lies at Rs. 204 with resistance at Rs. 214 and 219. After initial dips, base metals pricesshould recover during the day.

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