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GLOBAL MARKET ROUND UP

Commodity prices traded mixed on Wednesday with most of the commodities in non-agro segment traded higher while crude oil prices plunged by more than 5% for the day. Bullion prices gained on weaker dollar while base metals traded firm on supply worries. The dollar index ended 0.34% down at 109.84 for the day

U.S. stocks finished sharply higher on Wednesday, with all three benchmarks posting their best day of gains in about a month, as investors assessed remarks by Federal Reserve Vice Chair Lael Brainard and other Fed officials, while digesting the central bank’s latest compilation of economic anecdotes. Brainard, the No. 2 official at the central bank, said on Wednesday that the Fed will need to raise the policy rate further and keep rates at high levels for some time to “provide confidence that inflation is moving down to target.” U.S. stock indexes climbed the most in roughly a month as bond yields eased, with investors shrugging off hawkish remarks made by Federal Reserve officials on Wednesday.

Yields pulled back Wednesday, with the 10-year US rate down 8.6 basis points to 3.264%. The 2-year Treasury yield slipped to 3.45%, below its multi year high and below its highest level of Tuesday at about 3.52%. The U.S. dollar hit a new 20-year high on Wednesday just shy of the 111 level.

Commodity Daily BULLION

Bullion prices traded steady on Thursday with gold prices at COMEX were trading 0.16% down near $1715 per ounce while spot silver prices at COMEX were trading flat near $18.44 per ounce in the morning trade. Bullion prices recovered in the evening session with gold prices gained above $1700 on weaker dollar giving respite to the bullion traders. Market players are focusing on ECB meeting outcome over rate decision.

We expect bullion prices to trade sideways to down for the day. MCX Gold Oct resistance for the day at Rs. 50800 per 10 grams with support at Rs. 50200 per 10 grams. MCX Silver Dec resistance forthe day at Rs. 55200 with support at Rs. 52800.

COMEX Gold Spot

 COMEX Silver Spot

Commodity Daily ENERGY

Crude oil prices traded higher with NYMEX WTI crude oil prices rose by nearly 1% to $82.72 per barrel for the day. Crude Oil prices rose on Thursday as the U.S. energy watchdog forecast slightly higher demand and tighter supply going into 2023, although concerns over weakening economic growth kept prices pinned near eight-month lows. Earlier, oil prices slumped to their lowest levels since January on Wednesday, after weak economic prints from China, interest rate hikes and a surprise rise in U.S. inventories brewed concerns over slowing demand

We expect crude oil prices to trade sideways to up for the day. MCX Crude Oil September support lies at Rs. 6510 per barrel with resistance at Rs. 6750 per barrel. MCX Natural gas September contract is expected to trade weak with support at Rs. 610 and resistance at Rs. 670

MCX Crude Oil Sep 2022

MCX Natural Gas Sep 2022

Commodity Daily BASE METALS

Base metals prices traded firm on Thursday with most of the metals gained in the opening trade. A union at Chile’s Escondida, the world’s biggest copper mine, is threatening to stage protests over alleged unsafe working conditions. Regarding alleged unsafe conditions, BHP said ittemporarily closed the affected areas before proactively reporting to authorities.

Base metals may trade sideways to up for the day. MCX Copper Sept support lies at Rs. 635 and resistance at Rs. 648. MCX Zinc Sept support lies at Rs. 278, resistance at Rs. 287. MCX Aluminium Sept support lies at Rs. 195 with resistance at Rs. 203.

LME Copper 3M Forward

LME Zinc 3M Forward

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