Copper Futures Rise Amid Tariff Impact Assessment - HDFC Securities Ltd
Gold rose on Monday after last week’s sharp correction, with investors weighing the economic outlook as US president Donald Trump confirmed he would impose tariffs on trading partners, deepening concerns about the outlook for the global economy and sparking haven buying.
Trump is on the verge of hitting Canada and Mexico with 25% tariffs as soon as this week and is planning on doubling a levy on China. There’s increasing concern the moves will undermine a US economy that is already showing signs of cooling—a scenario that underscores the precious metal’s haven status.
Monday’s soft ISM Manufacturing PMI data added to a slew of other disappointing indicators in recent weeks that point to weaker housing, rising unemployment claims, and a decline in personal spending. The reports have boosted wagers on Federal Reserve interest-rate cuts later this year—a scenario that also tends to add to bullion’s appeal as a non-yielding asset.
Crude oil dropped to the lowest this year after media reported that OPEC+ will restart some halted production, a surprise decision that threatens to deepen a projected global surplus of crude.
Natural gas surged more than 7.0% as forecasts call for cooler temperatures in the West during the first half of March. Despite record U.S. gas output, concerns about supply levels and ongoing European demand also supported natural gas prices.
Copper futures gained on Monday and hovered in the upper end range as markets continued to assess the impact that tariffs by US President Trump would have on domestic capacity.
Gold
Trading Range: 85050 to 85980
Intraday Trading Strategy: Buy Gold Mini Apr Fut at 85150-85180 SL 84925 Target 85620
Silver
Trading Range: 95335 to 97150
Intraday Trading Strategy: Buy Silver Mini Apr Fut 95380 SL 94700 Target 96350/96500
Crude Oil
Trading Range: 5870 to 6035
Intraday Trading Strategy: Sell Crude Oil Mar Fut at 6010 SL 6065 Target 5925
Natural Gas
Trading Range: 339 to 375
Intraday Trading Strategy: Buy Natural Gas Mar Fut at 353 SL 343.0 Target 365/367
Copper
Trading Range: 856 to 867
Intraday Trading Strategy: Sell Copper Mar Fut at 865.5 SL 869.0 Target 857
Zinc
Trading Range: 265-274
Intraday Trading Strategy: Buy Zinc Mar Fut above 271.0 SL 268.35 Target 274.0
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