All non-agricultural commodities were under selling pressure due to the muscular dollar during the shortened holiday week. For another week, energy was the topic of the market.
However, natural gas fluctuated wildly from $ 342 to $ 290 and fell to the overbought pressure of the recent speculative rally. WTI oil, trapped in a bear market, is continuing to decline as bearish indicators cause further pain.
The oil suffered a seventh weekly loss after Saudi Arabia signaled that its production may have hit a record high, while US crude oil stocks are causing concern over potential supply shortage.
The US dollar rebounded after the US recorded strong start-up, construction and home sales, but US dollar gains slowed as US durable goods orders plummeted.
which picked up again in early November, stagnated in Thanksgiving Week in the US.
Finally, industrial metals fell under the concerns of the trade war on speculation about China's slowdown in economic growth. In addition, traders focused on the G-20 meeting to be held in Argentina next week.
Nickel returned to China for the sixth week, its worst since the start of futures trading in 201
US President Donald Trump and Chinese leader Xi Jinping have announced that they are both ready for a much anticipated meeting on the group's 20 summit in Argentina next week.
The world's largest economies have been in an escalating trade war, which is increasingly having an impact on financial markets and global growth.
Recently, Trump said he was pleased that China wanted to make a deal with the US. Therefore, this event will be crucial, especially for industrial metals.
It is expected that commodities for commodities will be at least volatile. OPEC will meet in Vienna on 6th December. Until then, we believe that crude oil would come under pressure, although it has dropped 33 percent from recent highs.
Market speculation is widespread, although OPEC limits its production, markets may not turn around. Considering the volatility of natural gas, it is advisable to avoid it.
Finally, gold can be traded as long as $ 1,200-1,235 is unbroken, with volume support.
The US will publish its GDP for the third quarter and the minutes of the last Fed meeting. The dollar should therefore be volatile. On the MCX, the rupee may hold the yellow metal in a bear hug.
The author is head of commodity research and consulting, Anand Rathi Commodities.
Disclaimer: The views and investment tips of investment professionals / brokers / rating agencies on Moneycontrol are their own, and not those of the website or its management. Moneycontrol encourages users to inquire about making investment decisions with certified experts.