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GLOBAL MARKET ROUND UP

Gold gains as the dollar retreated. Bullion is still trading near its lowest level in the month, with concerns of a hawkish Fed policy to quash hot inflation weighing on the metal. In China, President Xi Jinping provided few signs of a letup in the nation’s Covid Zero strategy and furthersupportfor the ailing property sector.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.22% to 939.10 tonnes on Monday.

Aluminum fell the most since August after inventories tracked by the London Metal Exchange saw the biggest percentage gain in 19 months, fueling speculation that a glut of unwanted Russian metal could start arriving on the bourse.

WTI traded near $85 a barrel after closing 0.2% lower on Monday. While time spreads are signalling tightness ahead of OPEC+ output cuts from November, bearish factors such as aggressive monetary policy from central banks to tame inflation continue to drag on the market

The global stock marketstarted the week with a big rally that at one point lifted over 99% of the companies in the US equity benchmark. Stocks ripped higher with a vengeance as the Nasdaq 100 gained 3.5% for its best single showing since late July, while the S&P 500 levitated by 2.6%.

The dollar fell as US shares rose sharply amid earnings reports and as yields slid. The pound gained with gilts after the UK’s new Chancellor of the Exchequer Jeremy Hunt outlined plansto scrap proposed tax cuts and spending for energy bills.

Commodity Daily BULLION

Gold climbed on weakness in Treasuries and the dollar as risk sentiment improved after more of the UK government’s unfunded tax cuts were reversed. Gold prices were steady on Tuesday as the dollar faltered, although risks from looming aggressive interest hikes by the U.S. Federal Reserve limited gains in zero-yielding bullion.

Trading Strategy:

Spot gold prices are trading below the daily Ichimoku conversion and base lines, indicating a weak trend, as the metal turns the most volatile since March. Prices are trading below both the daily Ichimoku conversion and baselines, which are expected to offer resistance in a cluster between $1,675 and $1,685. A break of $1,640 will bring the support at $1,628 and the Sept. 28 low of $1,614 back in focus. MCX Gold is expected to witness bargain buying ahead of festive demand. It hassupport at 50250 and resistance at 50850.

Commodity Daily ENERGY

Oil fluctuated after Monday’s choppy session asinvestors weighed signs of a tight market against concerns over an economic slowdown. WTI traded near $85 a barrel after closing 0.2% lower on Monday. While time spreads are signalling tightness ahead of OPEC+ output cuts from November, bearish factors such as aggressive monetary policy from central banksto tame inflation continue to drag on the market

Trading Strategy:

MCX crude oil Oct. fut. is likely to trade higher after Monday’s Doji Candlestick pattern and retracing 50% of the previous up move. It hassupport at 6950 and resistance at 7170. MCX Natural gas Oct. fut. as expected touched the lower channel line on Monday and broke the 200 DMA. It is expected to fall further towards 470 while on the higherside 520 will act asresistance.

Commodity Daily BASE METALS

Uncertainty over weakening metal demand in China weighed on Industrial metals. After a highly volatile session, Base metals prices ended with losses. Selling pressure emerges during the second half where Aluminium and Zinc ended the day with nearly 2% losses while copper fell marginally. Rio Tinto, the world’s second-largest miner, yesterday, forecast softer iron ore shipments this year, signalling weaker industrial activity across the globe and especially in China.

Trading Strategy:

MCX Copper Oct support lies at Rs. 645 and resistance at Rs. 656 and 661. MCX Zinc Oct support lies at Rs. 261, resistance at Rs. 270. MCX Aluminium Oct support lies at Rs. 195 with resistance at Rs. 202. Basemetals prices are likely to recover after initial weakness.

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