Bullion declined on Thursday as traders took profits after a nearly 5.0% rally over the past two weeks - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Bullion declined on Thursday as traders took profits after a nearly 5.0% rally over the past two weeks. The prices have entered overbought territory on both daily and weekly time frames, suggesting that a correction is anticipated. Additionally, investors appear to be cautious about the upcoming key U.S. jobs market data, which could influence the Federal Reserve's policy stance. A cautious approach also contributes to the pullback in gold prices from record highs.
US data releases from yesterday were largely mixed. The ADP employment change came in at 54K, falling short of the forecast of 68K, which was disappointing. In contrast, the ISM Services Index rebounded strongly from 50.10 in July to 52, marking the fastest expansion since February, as new orders surged the most since October 2024; however, employment has contracted for the third consecutive month. Initial jobless claims increased to 237K, reaching a two-month high and exceeding the median forecast of 230K, as hiring plans dropped to their lowest level for any August recorded. Attention has now shifted to today's nonfarm payrolls report for further insights into labor market momentum.
Crude oil fell for a third consecutive day, heading for a weekly decline as an OPEC+ meeting approach, which may result in the group approving another supply hike. On the other side, yesterday's U.S. government report indicated an increase in nationwide crude stockpiles, including a rise of 1.6 million barrels at the key storage hub in Cushing, Oklahoma, marking the largest increase since March.
Natural gas remains stable at the upper end of its range, amid mixed cues. Forecasts indicate warmer temperatures in the northern half of the U.S., which provides support, while the storage report released yesterday revealed inventories that were slightly higher than expected.
Gold
* Trading Range: 106050 to 107300
* Intraday Trading Strategy: Buy Gold Mini Oct Fut at 106450-106475 SL 105900 Target 107080/107300
Silver
* Trading Range: 123400 to 126050
* Intraday Trading Strategy: Buy Silver Mini Nov Fut at 124025-124050 SL 123080 Target 125480/126050
Crude Oil
* Trading Range: 5505 to 5725
* Intraday Trading Strategy: Sell Crude Oil Sep Fut at 5650 SL 5725 Target 5535/5480
Natural Gas
* Trading Range: 265 to 280
* Intraday Trading Strategy: Buy Natural Gas Sep Fut at 269-270 SL 265.80 Target 277/280
Copper
* Trading Range: 894 to 912
* Intraday Trading Strategy: Buy Copper Sep Fut at 902 SL 895 Target 909.80/912
Zinc
* Trading Range: 271 to 280
* Intraday Trading Strategy: Buy Zinc Sep Fut at 272.50-273.0 SL 269.80 Target 275.8/277
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