Bullion falls as strong U.S. data boosts dollar, pressures prices - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Bullion prices fell on Wednesday as positive U.S. macroeconomic data strengthened the U.S. dollar, putting downward pressure on bullion. The latest figures indicated that the U.S. economy experienced growth in the second quarter, adding uncertainty to the interest-rate outlook. U.S. gross domestic product grew 3%, above economists' projections of 2.3% growth. This follows better-than-expected private payroll data for July.
* The Federal Reserve's rate-setting committee voted 9-2 on Wednesday to maintain interest rates steady for the fifth consecutive meeting, despite President Trump's advocacy for lower borrowing costs. Nonetheless, indications of a broadly healthy economy may provide the U.S. central bank with greater flexibility to keep rates steady for an extended period.
* Crude oil prices have surged to a new swing high, driven by concerns that U.S. sanctions may decrease the flow of Russian crude oil. This increase is also fueled by optimism surrounding trade agreements with the EU and Japan, as well as a larger-than-expected rise in U.S. GDP for the second quarter.
* Natural gas prices fell on Wednesday due to a mixed weather forecast and expectations that weekly natural gas inventories will rise more than the seasonal average.
* In the base metals space, COMEX copper futures dropped 19% after President Donald Trump's unexpected announcement that refined materials would be exempt from significant new tariffs on the metal.
* On the macroeconomic front, recent data indicated that China's manufacturing activity contracted for the fourth consecutive month in July, reflecting weakened demand both domestically and internationally
Gold
• Trading Range: 97420 to 98900
• Intraday Trading Strategy: Sell Gold Mini Sep Fut at 98575-98585 SL 98900 Target 98180/ 97925
Silver
• Trading Range: 109700 to 113125
• Intraday Trading Strategy: Sell Silver Mini Aug Fut at 111915-111925 SL 112700 Target 110900/110480
Crude Oil
• Trading Range: 6005 to 6225
• Intraday Trading Strategy: Sell Crude Oil Aug Fut at 6165-6170 SL 6225 Target 6094/6050
Natural Gas
• Trading Range: 255 to 280
• Intraday Trading Strategy: Sell Natural Gas Aug Fut at 270-271.0 SL 275.80 Target 259/255
Copper
• Trading Range: 862 to 897
• Intraday Trading Strategy: Sell Copper Aug Fut at 888-889 SL 897 Target 880/875.80
Zinc
• Trading Range: 263 to 270
• Intraday Trading Strategy: Sell Zinc Aug Fut at 268.50 SL 271.80 Target 265.5/263.80
Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795
SEBI Registration number is INZ00017133
