Crude oil drifted lower in a thin trading week due to a holiday in the US - HDFC Securities Ltd
Global Market Round Up
* Gold rose on Friday as the dollar and treasury yields weakened, but on a weekly and monthly basis, gold settled lower. Spot gold registered the largest monthly net and percentage decline since Sept. 2023. A long liquidation and the ease of the risk premium drove the decline. The end of the US election event and the easing of geopolitical tensions in the Middle East following Israel and Lebanon's agreement to a ceasefire both contributed to a reduction in the demand for safe haven.
* Crude oil drifted lower in a thin trading week due to a holiday in the US. Traders avoided creating fresh positions ahead of OPEC+’s production plans. OPEC and its allies face a decision about whether to revive curtailed production amid expectations of a glut next year. OPEC+ delegates said earlier this week that talks have begun about delaying the restoration of output.
* Natural gas bounced back from a weekly low and ended the week moderately higher due to expectations of cold air moving into the US states, which fueled the demand for natural gas for heating.
* Industrial metals concluded the week in a mixed manner, with copper closing marginally higher, aluminum slightly lower, and zinc closing 4.50% higher. The report of a large trading company intending to withdraw almost 100,000 tons from LME warehouses drives the rally in zinc. This marks the largest planned withdrawal since 2017.
What to Watch: This week, market participants focus on manufacturing PMI from China, India, the Eurozone, and the US. In addition to PMI data, this week's major economic events include the release of the US monthly payroll report, an online OPEC meeting, speeches from Fed Chair Jerome Powell and ECB President Christine Lagarde, and the Reserve Bank of India's monetary policy.
Gold
Trading Range and Strategy:
Expected range for Gold Feb Fut is 74525–78480. Sell Gold Feb Fut around 76600–76650 TGT 75610/74900 Keep Stop Loss 77380.
Silver
Trading Range and Strategy:
Expected range for Silver Mar Fut is 88700–92480. Sell Silver Mar Fut at 90500-90600 TGT 88700/86500 SL 91700.
Crude Oil
Trading Range and Strategy:
Expected range for Crude Oil Dec Fut is 5680–6105. Buy Crude oil Dec above 5905 TGT 6035/6105 SL 5800.
Natural Gas
Trading Range and Strategy:
Expected range for Natural Gas Dec Fut is 245–305. Sell Natural Gas Dec Fut at 280 TGT 266/250 SL 292.
Copper
Trading Range and Strategy:
Expected range for Copper Dec Fut is 782-819. Sell Copper Dec Fut at 809-810 TGT 794/788 SL 819.
Zinc
Trading Range and Strategy:
Expected range for Zinc Dec Fut is 275.8–294.8 Sell Zinc Dec Fut at 288.0 TGT, 280.0 SL 292.0
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