Copper and other base metals remain stable at the upper end of their range - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold extended gains on Tuesday driven by strong safe-haven flow and US Treasury yields, and the dollar continued to weaken amid persistent uncertainty over trade negotiations. With President Donald Trump's August 1 tariff deadline looming, fears grew that the US and EU may fail to reach an agreement.
* Investor focus is on the EU-US trade discussions; Trump has already threatened to impose higher taxes on Europe. On the other hand, European Union officials are scheduled to gather as early as this week to plan a strategy for responding to a possible no-deal scenario with the US. We believe gold prices will remain supportive in the short term as uncertainty is likely to increase before the final deadline is reached.
* Crude oil prices have fallen for a third consecutive session as the market shifts its attention to the impending deadline for U.S. tariffs and the upcoming OPEC+ meeting to determine September's production levels. OPEC+ is expected to add 281,000 barrels per day in September. However, speculation suggests that OPEC+ may increase this amount further. In the meantime, today’s focus will be on the government's weekly storage report.
* Natural gas continued to decline on Tuesday, reaching a 1.5-week low due to forecasts of cooler temperatures in the U.S., which are expected to reduce demand for natural gas in electricity generation. Additionally, expectations for increased natural gas production in the U.S. are putting further pressure on prices. This comes after last Friday's weekly report from Baker Hughes indicated that the number of active natural gas drilling rigs in the U.S. rose by 9 to a 17-month high of 117 rigs during the week ending July 18.
* Copper and other base metals remain stable at the upper end of their range. Traders appear to be awaiting new signals as the August 1 deadline for U.S. tariffs approaches.
Gold
• Trading Range: 99050 to 101380
• Intraday Trading Strategy: Buy Gold Mini Aug Fut at 99780-99800 SL 99450 Target 100525 & 100900
Silver
• Trading Range: 114680 to 117380
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 115380-115400 SL 114650 Target 116650/117380
Crude Oil
• Trading Range: 5580 to 5750
• Intraday Trading Strategy: Buy Crude Oil Aug Fut at 5625-5630 SL 5550 Target 5715/5735
Natural Gas
• Trading Range: 272 to 294
• Intraday Trading Strategy: Sell Natural Gas Jul Fut at 287-288 SL 294.0 Target 280.50/275
Copper
• Trading Range: 88 to 906
• Intraday Trading Strategy: Buy Copper Aug Fut at 894-895 SL 888 Target 903/905.50
Zinc
• Trading Range: 264 to 272
• Intraday Trading Strategy: Buy Zinc Aug Fut at 267.50 SL 263.80 Target 270.50/272.0
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