Crude oil prices fell due to broader market weakness and fears over a global glut of crude - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold rose to another record high level and ended the session with a gain of 1.14% on Tuesday as an escalation in Middle East tensions underscored its haven appeal, and investors weighed data that fueled concern the US economy is slowing down.
* Inflows into physically backed gold exchange-traded funds continued to rise for a fifth consecutive day. The amount of gold held in ETFs has risen 5% this year, after dropping for the past four years.
* Crude oil prices fell due to broader market weakness and fears over a global glut of crude. Tensions in the Middle East, such as Israel's military action in Gaza and US pressure on Iran, initially raised prices but were later overshadowed by demand concerns. Meanwhile, traders are waiting for today’s US government inventory report for fresh cues on the demand and supply front.
* After two sessions of losses, natural gas closed with a minor gain on Tuesday, supported by the storage deficit and strong LNG demand.
* Copper rose for a second straight day as traders assessed geopolitical risks and a weakening dollar while awaiting a rate decision by the Federal Reserve. On Tuesday, the dollar index hit a fresh swing low, and over the past 4 weeks, it lost 3.68%. In the last 12 months, it decreased 0.58%.
* It’s widely expected the FOMC will hold rates steady in today's FOMC meeting outcome; however, traders focus on economic projections and Chair Jerome Powell's press conference, which could potentially provide clues for future policy paths and have an impact on commodity prices.
Gold
Trading Range: 88450 to 89300
Intraday Trading Strategy: Buy Gold Mini Apr Fut at 88575-88600 SL 88380 Target 89020
Silver
Trading Range: 99950 to 102900
Intraday Trading Strategy: Buy Silver Mini Apr Fut above 101880 SL 101080 Target 102980
Crude Oil
Trading Range: 5720 to 5900
Intraday Trading Strategy: Sell Crude Oil Apr Fut at 5835 SL 5900 Target 5750/5720
Natural Gas
Trading Range: 342 to 366
Intraday Trading Strategy: Buy Natural Gas Mar Fut at 350.0 SL 343.8 Target 359
Copper
Trading Range: 894 to 910
Intraday Trading Strategy: Buy Copper Mar Fut at 904 SL 898.0 Target 912
Zinc
Trading Range: 274-282
Intraday Trading Strategy: Buy Zinc Mar Fut at 275.50 SL 272.0 Target 279
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