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GLOBAL MARKET ROUND UP

Gold remained under pressure after ending the previous volatile session lower, as prospects for further monetary-policy tightening and geopolitical risks weighed on investor sentiment and sent traders seeking shelter in the US dollar. Gold, which is non-yielding, typically has a negative correlation with the dollar and rates as it is priced in the greenback.

Oil markets continue to be buffeted by concerns about the global economy and the cuts announced by the Organization of Petroleum Exporting Countries and its allies. Traders are closely watching for demand signals as growth islikely to sufferfromcentral banks’ monetary policy.

Copper climbed for the first time in four sessions, bolstered by a tight global supply outlook, a slower-than-expected buildup in Chinese inventories and the risk of disruption to Russia’s metal exports.

Shares declined in Asia following a fourth straight drop in US equities amid persistent concern that rising interest rates and geopolitical threats will crimp global growth.

The US Fed has signaled a potential fourth 75 basis point hike in November. A US jobs report last week further rekindled concerns about continuing interest rate hikes.

Commodity Daily BULLION

Today, U.S. Gold prices hovered above annual lows after tumbling sharply on hawkish signals from the Federal Reserve. Federal Reserve Vice Chair Lael Brainard on Monday emphasized the need for restrictive monetary policy and said that the economic damage of recent rate hikes was yet to be felt. She added that the bank will only ease off large rate hikes once there is “confidence that inflation comes down,” giving no signals that the central bank intends to soften its hawkish stance. Her comments boosted the dollar and caused a steep selloff across most asset classes

Trading Strategy: Sharp selloff was witnessed in yellow metals yesterday, as MCX Dec fut in Gold and Silver fell by 1.8% and 2.7% respectively. Gold Dec fut has reached near crucial support of 50780. Below 50780, Gold could move towards the next support of 50175. Resistance is seen at 51685. Silver Dec fut has got support at 58350, while resistancesfor the same are seen at 60000 and 60900.

Commodity Daily ENERGY

Oil swung between gains and losses as concerns over a global slowdown vied with a tightening supply outlook after OPEC+ last week announced an output cut. West Texas Intermediate traded near $91 a barrel after losing 1.6% on Monday.

Oil markets continue to be buffeted by concerns about the global economy and the cuts announced by the Organization of Petroleum Exporting Countries and its allies. Traders are closely watching for demand signals as growth islikely to suffer fromcentral banks’ monetary policy.

In China, the world’s largest crude importer, authorities are signaling that there’ll be no let up in the nation’s Covid Zero policy, potentially acting as a brake on energy demand.

Trading Strategy: MCX Crude Oil Oct. fut. formed Doji candlestick pattern is considered as indecisiveness among traders at a higher range. In the near term, crude oil may show profit booking. It has resistance at 7770 and support at 7440

 Commodity Daily BASE METALS

Base metals prices witnessed profit booking during the second half on Monday with Aluminium and Zinc ending with losses while copper ended in the green. A fall in the US markets and a strong dollar on hawkish signals from the Federal Reserve also dampened the sentiment for the metal prices. Copper prices bucked the trend on the hope that Chinese demand will persevere despite recent economic headwinds

Shares declined in Asia following a fourth straight drop in US equities amid persistent concern that rising interest rates and geopolitical threats will crimp global growth.

Trading Strategy:- MCX Copper Oct support lies at Rs. 650 and resistance at Rs. 661 and 670. MCX Zinc Oct support lies at Rs. 271, resistance at Rs. 279. MCX Aluminium Octsupport lies at Rs. 197 with resistance at Rs. 206. Basemetals prices are likely to trade in the narrow range today.

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