Copper and other base metals declined as a strong US dollar, and increased inventories pressured prices - HDFC Securities
GLOBAL MARKET ROUND UP
Bullion extended losses on Tuesday, as signs of progress in Ukraine's peace talks diminished demand for safe haven assets, which act as a headwind for the precious metal.
Furthermore, steadiness in the treasury yields and strength in the US dollar have also weighed down precious metals.
The yield on the 10-year US Treasury note remained above 4.25% on Tuesday, following three consecutive sessions of increases, while the dollar index climbed to its highest level in a week. Meanwhile, market participants are now awaiting the release of the minutes from the Fed's July meeting, scheduled for later today.
These minutes are expected to offer more details about the central bank's policy stance. Crude oil prices continue to consolidate at the lower end of the range amid mixed global cues.
There are heightened expectations of a possible peace deal between Russia and Ukraine, along with a lower likelihood of sanctions, which are capping upside for oil prices.
Conversely, China is increasing its storage capacity, and Canadian production will soon enter maintenance, providing a floor for the downside. Natural gas fell over 6.0% during intraday trading and concluded the session down 4.29% on Tuesday.
This decline was driven by expectations of increased US natural gas production and a weak demand outlook, both of which continued to negatively affect natural gas prices.
Copper and other base metals declined as a strong US dollar, and increased inventories pressured prices.
Meanwhile, China maintained its benchmark lending rates for the third consecutive month in August, which may have further contributed to the negative sentiment surrounding base metals
Gold
• Trading Range: 97875 to 99080
• Intraday Trading Strategy: Sell Gold Mini Sep Fut at 98500-98525 SL 98905 Target 98025/97900
Silver
• Trading Range: 109800 to 112495
• Intraday Trading Strategy: Sell Silver Mini Aug Fut at 111125-111150 SL 111780 Target 109900/109580
Crude Oil
• Trading Range: 5265 to 5500
• Intraday Trading Strategy: Sell Crude Oil Sep Fut at 5445-5450 SL 5524 Target 5345/5320
Natural Gas
• Trading Range: 229 to 255
• Intraday Trading Strategy: Sell Natural Gas Aug Fut at 242-243 SL 250.0 Target 233/229
Copper
• Trading Range: 862 to 884
• Intraday Trading Strategy: Sell Copper Aug Fut at 873-874 SL 880 Target 865/863.80
Zinc
• Trading Range: 259 to 267
• Intraday Trading Strategy: Sell Zinc Aug Fut at 265.50 SL 267.0 Target 261.8
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