Copper prices steadied as traders reacted to a potential softening of the Trump administration's stance on trade - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold closed with a gain on Thursday after a volatile run of trading, with investors assessing trade tensions and the possibility of US rate cuts. In a Thursday interview on television, Federal Reserve Governor Christopher Waller said companies may begin laying off more workers if aggressive tariff levels are reinstated, and he’d support rate cuts in that scenario to protect the jobs market.
* Traders are betting that the Fed could cut rates sooner than anticipated to prevent a recession due to Trump’s trade war. That’s positive for bullion, as it pays no interest.
* Crude oil rose on Thursday as producers’ promises to keep output growth in check added to signs of the physical market’s strength and a potential easing in trade tensions between the US and China. Some metrics are pointing near-term strength in the oil market. The prompt spreads for global benchmarks Brent and WTI have widened this month in a bullish backwardation structure, signaling tight supply. Natural gas extended losses on Thursday following a bearish weekly storage report.
* Natural gas inventories increased last week by 88 billion cubic feet, narrowing the deficit against the five-year average and year-earlier level, EIA data show. In addition to this, higher production also weighed down on prices. New data showed that US gas production in the lower 48 states rose to 106.6 billion cubic feet per day so far in April, a record high.
* Copper prices steadied as traders reacted to a potential softening of the Trump administration's stance on trade.
Gold
Trading Range: 95150 to 97050
Intraday Trading Strategy: Sell Gold Mini May Fut at 95750-95780 SL 96300 Target 95150
Silver
Trading Range: 96680 to 99080
Intraday Trading Strategy: Buy Silver Mini Jun Fut above 99200 SL 98720 Target 99780/99000
Crude Oil
Trading Range: 5320 to 5480
Intraday Trading Strategy: Buy Crude Oil May Fut at 5410 SL 5319 Target 5524
Natural Gas
Trading Range: 250 to 275
Intraday Trading Strategy: Buy Natural Gas May Fut at 259 SL 252.8 Target 273
Copper
Trading Range: 850 to 866
Intraday Trading Strategy: Buy Copper May Fut at 855.50 SL 851.0 Target 863
Zinc
Trading Range: 250-259
Intraday Trading Strategy: Sell Zinc May Fut at 257.50 SL 260.20 Target 251
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