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GLOBAL MARKET ROUND UP

Gold gave up gains as the dollar and Treasury yields pushed higher after Bank of England’s Governor Andrew Bailey told investors that the UK’s central bank will end marketsupport as planned at the end of this week.

President Joe Biden said there would be “consequences” for Saudi Arabia over the decision by OPEC+ to slash production, a move the administration says will benefit Russia by propping up oil prices.

Copper erased losses as a rally in the dollar paused, with traders digesting another flurry of downbeat commentary on the global economy. Metals have struggled for direction in recent weeks. Investors are grappling with persistent concerns over the impact of rising interest rates and geopolitical tensions, including a surging dollar that makes commodities more expensive in other currencies.

Asian stocks stayed at two-year lows on Wednesday, after a strengthening U.S. dollar, instability in the U.K. bond market, and forthcoming U.S. inflation data spelt a wild session on Wall Street.

Focus is turning to US inflation data due Thursday for clues on the Fed’s future rate-hike path after the central bank signalled the likelihood of pushing on with tightening its monetary policy.

Commodity Daily BULLION

Pressure from the dollar increased amid more hawkish signals from the Federal Reserve. Minutesfrom the Fed’s September meeting, due later in the day, are also expected to reinforce the Fed’s stance, given that the central bank raised interest rates by 75 basis points and warned that it was willing to risk some economic headwinds from higher rates, as it moves to control inflation. Consumer price inflation, the more closely-watched inflation gauge, is due on Thursday. Both readings, coupled with strong jobs data last week, are expected to give the Fed enough impetusto keep raising interestrates at a sharp pace.

Trading Strategy: MCX Silver Dec Future has strong support around 58000, where a downward sloping trendline on the daily chart is placed. The higher top and higher bottom formations on a Silver and Gold chart are well intact, and therefore we advise to remain bullish on gold and silver in today’s session. Supports for Gold dec fut. are seen at 50700 and 50175, while resistances are seen at 51360 and 52100odd levels.

 Commodity Daily ENERGY

Oil dropped for a third day on escalating concerns about a global slowdown, with US President Joe Biden saying a recession was possible. WTI fell below $89 a barrel after losing more than 3% over the past two sessions. A backdrop of recessionary concerns and oil demand downgrades usually makes it difficult for the oil market to sustain any significant price rally.

Trading Strategy: MCX crude oil Oct. fut. is expected to find support in the range of 7230 to 7150 while on the higher side 7570 will act asresistance. MCX Natural gas Oct. fut. may find lower level buying and we could see levels of 586 while breaking of 525 will negate the said view and we can see the sell-off towards 460, the lower trend line of the channel.

Commodity Daily BASE METALS

After a sharp fall during the early part of the day, Base metals prices on MCX recovered from the intraday low. However, they ended in the red yesterday with Zinc falling the most while copper ended with mild losses. Inflation data for September is also a key point of focus for metal markets this week. Producer price inflation data is due later on Wednesday and is expected to show that price headwinds for manufacturers persisted last month. The strong dollar on hawkish signals from the Federal Reserve also dampened the sentiment for the metal prices.

Trading Strategy: MCX Copper Oct support lies at Rs. 650 and resistance at Rs. 661 and 670. MCX Zinc Oct support lies at Rs. 268, resistance at Rs. 276. MCX Aluminium Oct support lies at Rs. 197 with resistance at Rs. 204. Basemetals prices are likely to trade with positive bias after a subdued opening.

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