IGI Logo

GLOBAL MARKET ROUND UP

Precious metals traded steady on Thursday after posting strong gains in the previous session, supported by a weaker U.S. dollar and lower Treasury yields after the Federal Reserve left interest rates unchanged. Investors also digested Fed Chair Kevin Warsh's remarks, which signaled that policymakers remain cautious while closely monitoring the inflationary impact of the Iran conflict. However, bullion pared part of its overnight gains during Asian trading as markets reassessed the Fed's policy outlook. Although the central bank kept rates unchanged as widely expected, officials indicated that support for higher borrowing costs is gradually increasing if inflationary pressures persist, tempering optimism for an early easing cycle.

The near-term outlook for precious metals is expected to remain volatile as the ongoing U.S.-Iran conflict and elevated crude oil prices continue to fuel inflation concerns. Investors will now turn their attention to the U.S. Core PCE Price Index, the Federal Reserve's preferred measure of inflation, which is expected to be the key catalyst for the U.S. dollar, Treasury yields, and precious metals. Market will also monitor second-quarter U.S. GDP and weekly initial jobless claims for further insight into the strength of the U.S. economy. Spot gold is expected to trade in a near-term range of $3,975-$4,100.

Crude oil prices held firm above $84 per barrel on Thursday after surging more than 6% in the previous session, as renewed military confrontation between the U.S. and Iran heightened concerns over potential disruptions to global oil supplies. Market sentiment remained supported after President Donald Trump vowed a strong response following an attack on U.S. forces in Jordan, while ongoing diplomatic efforts showed no further progress as Tehran reiterated its demand to retain control over the Strait of Hormuz. Additional support came from tightening U.S. supply fundamentals after government data showed commercial crude inventories posted their largest weekly decline since midJune, reinforcing expectations of a tighter physical market and lending further support to oil prices. Natural gas recovered modestly from a three-month low as short covering emerged following the expiration of the August Nymex futures contract.

Copper advanced in Asian trading on technical buying after recent losses, with traders remaining.

Gold

• Trading Range: 140750 to 144480

• Intraday Trading Strategy: Sell Gold Mini Sep Fut at 143400-143450 SL 144175 Target 142725/142025

Silver

• Trading Range: 212900 to 223150

• Intraday Trading Strategy: Sell Silver Mini Aug Fut at 220900-220950 SL 223150 Target 217900/216750

CrudeOil

• Trading Range: 7750 to 8350

• Intraday Trading Strategy: Buy Crude Oil Aug Fut at 7980-8000 SL 7875 Target 8125/8200

Natural Gas

• Trading Range: 252 to 270

• Intraday Trading Strategy: Buy Natural Gas Aug Fut at 259-260 SL 254 Target 265/269

Copper

• Trading Range: 1305 to 1345

• Intraday Trading Strategy: Sell Copper Aug Fut at 1330-1332 SL 1336 Target 1322/1315

Zinc

• Trading Range: 371 to 381

• Intraday Trading Strategy: Sell Zinc Aug Fut at 379- 380 SL 382.80 Target 375.8/374

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

SEBI Registration number is INZ00017133