IGI Logo

GLOBAL MARKET ROUND UP

Commodity markets were mixed as investors digested solid economic data and more hawkish central bank comments. A stronger USD also weighed on sentiment.

COMEX Gold prices are trading muted today, pausing a recent rally after hawkish comments from Federal Reserve officials and signs ofstrength in the U.S. economy dented expectations for a dovish pivot by the central bank. Gold eased back towards $1700/oz amid the renewed strength in the dollar. This wastriggered by fresh data showing the US economy remainsresilient.

Copper struggled to keep its head above water as the dollar moved higher following hawkish comments from central bankers. The sentiment was weighed down by further rises in inventories. Copper stockpiles at LME warehouses have recorded 20 consecutive days of gains. Lead bucked the trend to move higher after Nyrstar shut down its smelter at Port Pirie in South Australia. Glencore’s move to place its Nordenham zinc smelter on case and maintenance also provided some supportto zinc prices.

Asian stock markets traded mostly higher in a shift that appeared to downplay concern that a cut in oil production would stoke inflation.

Commodity Daily BULLION

Metal markets rallied strongly this week after weak manufacturing data in the United States drove up expectations that the Fed would ease its hawkish stance to prevent more economic disruption from rising interest rates.

Trading Strategy:

MCX Gold and Silver fell during yesterday’s session, but the overall trend still remains bullish. Both underlying have recovered sharply from yesterday’s low and they are expected to continue their bullish trend. Dips should be utilized to accumulate longs. Supports for MCX Gold Dec Future are seen at 51362 and 50780, while resistances for the same are seen at 51980 and 52600. Support for MCX Silver Dec future is seen at 59408, while resistance for the same is seen at 62370. Trend of the bullion markets has turned bullish on the medium-termcharts.

Commodity Daily ENERGY

Crude oil gained after producers warned of further cuts to output. At its monthly meeting, the OPEC+ alliance agreed to cut current production quotas by 2mb/d. However, the group will use outdated production baselines to measure the curbs. Saudi Arabian Energy Minister Prince Abdulaziz Bin Salman said that the supply curbs will remain in place until the end of the agreement unless the market changes. At the same time, the European Union announced a new package of sanctions against Russia, including a price cap on oilsalesto third countries.

Trading Strategy:

We believe crude oil prices to retrace in the coming day before heading north. It has a resistance of 55 DEMA at 89.20 and support at 84.71. MCX crude oil October future has support at 6950 and resistance at 7570.

Commodity Daily BASE METALS

Base metals prices ended strong on Wednesday with Zinc, Copper and Aluminum ending with the gains. A sharp recovery in the US markets also supported the Base metal prices. Data this week showed that copper production in Chile, the world’s largest producer, continued to fall in August from a month ago. The tight supply from Chile, combined with lower supply from the ongoing war in Ukraine, has boosted prices.

Trading Strategy:-

MCX Copper Oct support lies at Rs. 622 and resistance at Rs. 670. MCX Zinc Oct support lies at Rs. 275, resistance at Rs. 286. MCX Aluminium Oct support lies at Rs. 201 with resistance at Rs. 212. Base metals prices are likely to trade with a positive bias for the day.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer