Weekly Commodity Podcast by Ravindra Rao | 18th Sept 2023

Highlights of this week's Commodity Podcast:• In the past week, we witnessed some exciting developments in the commodities market. WTI Crude oil, for instance, crossed the significant $90 mark, and towards the week's end, we observed a notable short-covering rally in precious metals• Global markets also experienced a boost, thanks to proactive efforts by Chinese regulators to stimulate domestic consumption. However, the persistent pressure of US inflation somewhat limited gains across various sectors• In the US, the annual inflation rate continued to accelerate for the second consecutive month, reaching 3.7% in August, up from 3.2% in July. Conversely, core inflation moderated for the fifth straight month, settling at 4.3%, aligning with market forecasts• COMEX Gold exhibited some resilience after initially dipping to $1921.70 per troy ounce. Concerns about another potential interest rate hike by the Federal Reserve were sparked by the latest US data. Conversely, Silver experienced positive momentum, benefiting from a rally in base metal prices and increased inflows in iShares holdings• The persistent focus on containing inflation and economic strength may serve as a short-term headwind for precious metal prices• In terms of technical analysis, silver spot prices in dollar terms displayed a bullish engulfing pattern, while MCX silver showcased a morning star candlestick formation near the 200 SMA support on the daily chart. Even Gold on MCX has formed a morning star pattern. Confirmation of the patterns might suggest price recovery in both the precious metals week• WTI Crude oil prices witnessed a significant surge, surpassing the $90 per barrel mark for the first time since November 2022. The ongoing trend appears to remain positive, contingent upon the critical level of $88 per barrel holding on a closing basis• LME base metals experienced some fluctuations during the week, influenced by a sharp rebound in the dollar and renewed concerns in property markets. Hopes of more stimulus from China might keep the metal prices supported• Looking ahead to the current week, several central bank meetings are lined up, with the Federal Reserve, Bank of England, and Bank of Japan taking centre stage. Additionally, we'll closely monitor flash PMIs from the US and European economies#KotakSecurities #commoditymarkets #commodities #commoditytrading #stockmarket #kotaksecurities #technicalanalysis #podcast