Crude oil prices closed flat to positive on Tuesday amid mixed signals - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold prices extended gains, with spot gold surpassing the important milestone of $4,000 per ounce. Expectations of a dovish monetary policy from the Federal Reserve, along with ongoing demand for safe-haven assets, drove the gold price to hit a series of record highs, even as it was technically in overbought territory.
The U.S. government shutdown has reached its eighth day, and there is still no resolution in sight. This shutdown has created uncertainty in financial markets and is providing a boost to precious metals. Additionally, ongoing political tensions in France and Japan, along with persistent geopolitical risks, are increasing demand for safe-haven assets.
Crude oil prices closed flat to positive on Tuesday amid mixed signals. OPEC and its allies announced a 137,000-barrel-a-day increase, which is significantly lower than market estimates and provided some support to oil prices. However, expectations of increased production from the U.S. raise concerns about oversupply.
The EIA reported that U.S. oil production is projected to rise to 13.53 million barrels per day in 2025, an increase from a previous forecast of 13.44 million. In 2026, production is expected to reach 13.51 million barrels per day, compared to an earlier estimate of 13.3 million.
Natural gas prices increased on Tuesday, supported by lower production levels, strong LNG feed gas flows, and anticipated weather-driven demand later this month.
Copper closed with a gain of 1.0% on Tuesday, driven by concerns over ongoing mine disruptions that outweighed the impact of a stronger dollar. Disruptions have also been reported at Kamoa-Kakula in the Democratic Republic of Congo and at the El Teniente mine in Chile.
Gold
* Trading Range: 121300 to 123088
* Intraday Trading Strategy: Buy Gold Mini Nov Fut at 121225-121250 SL 120750 Target 121819/122050
Silver
* Trading Range: 146580 to 150365
* Intraday Trading Strategy: Buy Silver Mini Nov Fut at 147025-147075 SL 146380 Target 148025/150365
Crude Oil
* Trading Range: 5420 to 5680
* Intraday Trading Strategy: Buy Crude Oil Oct Fut at 5505-5510 SL 5435 Target 5580/5620
Natural Gas
* Trading Range: 297 to 319
* Intraday Trading Strategy: Buy Natural Gas Oct Fut at 305-306 SL 297.80 Target 312.80/319
Copper
* Trading Range: 987 to 1006
* Intraday Trading Strategy: Buy Copper Oct Fut at 995-995.80 SL 986.0 Target 1004/1009
Zinc
* Trading Range: 289 to 302
* Intraday Trading Strategy: Buy Zinc Oct Fut at 294.5-294.8 SL 291.0 Target 299.8/301.0
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