IGI Logo

GLOBAL MARKET ROUND UP

Iranian targets in response to the downing of a U.S. military helicopter, dealing a setback to ongoing efforts to secure a broader peace agreement in the Middle East. The escalation renewed concerns that the conflict could widen further, threatening stability across the region and disrupting global energy supplies.

The latest developments have cast doubt on the durability of the fragile ceasefire and increased fears of prolonged disruptions around the Strait of Hormuz, a vital route for global oil and gas shipments. As a result, energy prices remained elevated, reinforcing concerns that inflationary pressures could persist for longer than previously expected. The combination of rising inflation risks and expectations of a prolonged restrictive monetary policy environment continued to support the U.S. dollar and Treasury yields, both of which remained near recent highs. This created a challenging backdrop for non-yielding assets such as gold and silver, limiting investor demand and keeping precious metals on the defensive.

Crude oil prices rebounded on Wednesday as renewed concerns over developments in West Asia kept investors focused on potential supply risks. WTI crude traded nearly 1% higher during the session before trimming some gains after the United States announced the conclusion of its brief retaliatory military operation. Despite the recent recovery, market sentiment remains mixed. While any ongoing disruption to energy flows from the region could quickly tighten supplies and lift prices, concerns over slowing global demand continue to limit the upside. Meanwhile, industry data from the API showed U.S. crude inventories fell by 9.1 mbl last week, the largest draw in four months. Market attention now turns to the government official U.S. inventory report due later today, which could further clarify the underlying supply-demand balance.

Markets are closely monitoring today's U.S. inflation report, which is anticipated to offer crucial insights into the Federal Reserve's policy direction. If the inflation reading is stronger than expected, it could bolster expectations for prolonged higher interest rates, thereby supporting the U.S. dollar and Treasury yields while exerting pressure on commodities. On the other hand, if the inflation data is softer, it may alleviate policy concerns and enhance sentiment in commodity markets. This release is expected to increase market volatility.

Gold

• Trading Range: 144900 to 151480

• Intraday Trading Strategy: Sell Gold Mini Jul Fut at 149750-149775 SL 150080 Target 147480/146650

Silver

• Trading Range: 223680 to 244750

• Intraday Trading Strategy: Sell Silver Mini Jun Fut at 241575-241600 SL 244025 Target 237900/235750

Crude Oil

• Trading Range: 8205 to 8750

• Intraday Trading Strategy: Buy Crude Oil Jun Fut at 8375-8380 SL 8205 Target 8550/8700

Natural Gas

• Trading Range: 287 to 306

• Intraday Trading Strategy: Sell Natural Gas Jun Fut at 301.80-302 SL 306.8 Target 295.50/292

Copper

• Trading Range: 1305 to 1345

• Intraday Trading Strategy: Sell Copper Jun Fut at 1329-1329.50 SL 1337 Target 1322.8/1317

Zinc

• Trading Range: 359 to 368

• Intraday Trading Strategy: Sell Zinc Jun Fut at 364.5- 365 SL 367.8 Target 361.80/359.0

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ00017133