Bullion declined after mixed US data encouraged traders to book profits ahead of the Federal Reserve’s final policy meeting of the year - HDFC Securities
GLOBAL MARKET ROUND UP
Bullion declined after mixed US data encouraged traders to book profits ahead of the Federal Reserve’s final policy meeting of the year. US economic data released Thursday offered a muddy outlook on the health of the economy. The rise in weekly jobless claims exceeded expectations, and the readings for producer prices showed mixed results. US wholesale inflation accelerated in November. The trajectory of monetary policy in 2025 remains highly uncertain as the world braces for Donald Trump’s return to the White House.
Markets are pricing in a potential Fed pause in January 2025 and the risk of a slower pace of Fed cuts going forward. Meanwhile, the European Central Bank trimmed borrowing costs by 25 basis points as expected and indicated it may deliver further cuts in its upcoming meetings.
Crude oil snapped a three-day rally to settle near $70 a barrel, with expectations for a supply glut in 2025 countering geopolitical risks. The International Energy Agency on Thursday reiterated its calls for a large supply surplus next year, despite OPEC’s decision to delay output hikes. On Thursday, natural gas rallied for a second session and settled at a two-week high. A larger-than-expected drop in weekly natural-gas supplies Thursday pushed prices higher after the EIA announced that natural-gas storage for the week ending December 6 fell -190 bcf, above estimates of -168 bcf.
Industrial metals fell on Thursday as a cautious mood spread across markets following the US dollar's recovery and the lack of details from a Chinese economic conference, which disappointed traders' expectations and weakened risk appetite ahead of next week's Federal Reserve meeting.
Gold
Trading Range : 77450 to 78425
Intraday Trading Strategy : Buy Gold Mini Jan Fut at 77225-77250 SL 76975 Target 77650
Silver
Trading Range: 91080 to 93750
Intraday Trading : Sell Silver Mini Feb Fut 92600-92650 SL 93480 Target 91750/91500
Crude Oil
Trading Range: 5780 to 6005
Intraday Trading Strategy : Sell Crude Oil Dec Fut at 5980 SL 6050 Target 5905/5880
Natural Gas
Trading Range: 277 to 305
Intraday Trading Strategy: Buy Natural Gas Dec Fut at 288 SL 282.0 Target 297/304
Copper
Trading Range: 812 to 826
Intraday Trading Strategy: Sell Copper Dec Fut at 822 SL 826.80 Target 815
Zinc
Trading Range: 280-289
Intraday Trading Strategy: Sell Zinc Dec Fut at 287.8 SL 289.8 Target 284/282.50
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