Crude dipped as Powell signaled no rate cut, trade woes linger - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Several factors, including the hawkish stance of Fed Chair Powell, the recovery in the US dollar, and the easing of trade tensions, contributed to the decline in gold during the previous session. Federal Reserve Chair Jerome Powell said the US central bank isn’t in a rush to adjust interest rates despite President Donald Trump’s trade war. Powell added it’s still appropriate to keep rates on hold. “We’re in the right place to wait and see how things evolve,” he said during a press conference Wednesday.
* Notably, the FOMC added to the policy statement that it judges "the risks of higher unemployment and higher inflation have risen," indicating a stagflationary outlook.
* Crude oil fell after Federal Reserve Chair Jerome Powell indicated no rush to adjust interest rates and amid ongoing US-China trade tensions. The decline in oil prices is also attributed to concerns over economic growth and energy demand. Meanwhile, US crude inventories fell by 2.03 million barrels last week to the lowest level since late March, EIA data showed. Jet fuel demand jumped to the highest since December 2019.
* Natural gas prices surged nearly 5.0% on Wednesday due to a decline in output and updated forecasts indicating that demand is expected to rise more than previously anticipated this week. This increase in demand is particularly linked to the return of Freeport LNG's export plant in Texas, which resumed operations following an outage the day before.
* Copper prices fell on Wednesday due to various factors, including macroeconomic conditions, uncertainty surrounding trade agreements, and recovery in the US dollar.
Gold
Trading Range: 96050 to 97900
Intraday Trading Strategy: Sell Gold Mini Jun Fut at 97050-97080 SL 97500 Target 96600/96450
Silver
Trading Range: 95300 to 97320
Intraday Trading Strategy: Buy Silver Mini Jun Fut at 96050-96075 SL 95380 Target 97100
Crude Oil
Trading Range: 4850 to 5050
Intraday Trading Strategy: Buy Crude Oil May Fut at 4935-4945 SL 4880 Target 5065
Natural Gas
Trading Range: 288 to 319
Intraday Trading Strategy: Buy Natural Gas May Fut at 304 SL 295 Target 312/315
Copper
Trading Range: 839 to 856
Intraday Trading Strategy: Buy Copper May Fut at 844-845 SL 839 Target 853
Zinc
Trading Range: 240 to 255
Intraday Trading Strategy: Sell Zinc May Fut at 249 SL 252 Target 245.50
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