Crude oil prices fell by more than 2.0% on Wednesday due to concerns that OPEC+ might increase supply - HDFC Securities
GLOBAL MARKET ROUND UP
Gold reached a new all-time high on Wednesday, driven by the expectation of US interestrate cuts, which increased the metal's appeal.
Traders were also seeking safety due to economic and geopolitical uncertainty around the globe. The rally in bullion extended on Wednesday evening session following dovish remarks from Federal Reserve Governor Christopher Waller, who stated that the US central bank should start lowering interest rates this month and implement multiple cuts in the coming months.
However, bullion prices were trading lower in Thursday morning's session on the back of profit-taking by traders after a recent rally.
Meanwhile, July JOLTs job opening data showed a larger-than-expected drop in US job openings, signaling a softer labor market and reinforcing bets on a potential September rate cut. Investors are now awaiting US jobless claims, ADP employment data, and Friday’s nonfarm payrolls report for further clues on economic momentum and Fed policy.
Crude oil prices fell by more than 2.0% on Wednesday due to concerns that OPEC+ might increase supply. Reports suggest that the cartel will discuss potential production hikes during its policy meeting this weekend. This move, intended to regain market share, could result in the group beginning to unwind 1.65 million barrels per day (bpd) of output cuts, which accounts for approximately 1.6% of global demand.
Natural gas reached a four-week high and closed up by 1.83% on Wednesday, driven by warm mid-September forecasts for the northern half of the country. The rise in temperatures suggests a potential increase in cooling demand. Focus is now on today’s weekly storage report. Copper and zinc prices have pulled back from recent highs, as investors assess the impact of weak industrial activity in China alongside ongoing supply concerns.
Gold
• Trading Range: 104780 to 107125
• Intraday Trading Strategy: Sell Gold Mini Oct Fut at 106300-106325 SL 106750 Target 105650/105480
Silver
• Trading Range: 121625 to 126080
• Intraday Trading Strategy: Sell Silver Mini Nov Fut at 124550-124575 SL 125680 Target 122900/122450
Crude Oil
• Trading Range: 5515 to 5725
• Intraday Trading Strategy: Sell Crude Oil Sep Fut at 5645 SL 5725 Target 5575/5550
Natural Gas
• Trading Range: 253 to 280
• Intraday Trading Strategy: Buy Natural Gas Sep Fut at 266-267 SL 259.80 Target 275/277
Copper
• Trading Range: 888 to 912
• Intraday Trading Strategy: Sell Copper Sep Fut at 902-903 SL 909 Target 894/892
Zinc
• Trading Range: 270 to 277.80
• Intraday Trading Strategy: Sell Zinc Sep Fut at 275.1 SL 277.8 Target 271.0
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