Crude oil prices increased as efforts to resolve the US government shutdown supported broader markets - HDFC Securities
GLOBAL MARKET ROUND UP
Gold trimmed its gains after reaching a three-week high on Tuesday, driven by the expectation of an imminent end to the US government shutdown. This development bolstered riskier assets while putting pressure on safe-haven metals. The record-setting 42- day closure appears to be nearing its conclusion following the Senate's passage of a temporary funding measure.
Private data reveals that U.S. companies lost an average of 11,250 jobs per week during the four weeks ending October 25, underscoring persistent labor market weakness and allowing for more room for rate reductions, which continue to act as a tailwind for gold and limit the losses.
Meanwhile, investors are now awaiting a flurry of official data when the US government ends the longest shutdown in its history. The restart—expected within days after the Senate passed a temporary funding measure—would remove the need for traders to rely on private data, adding more certainty to their forecasts and lifting the fog over future rate decisions.
Crude oil prices increased as efforts to resolve the US government shutdown supported broader markets. The oil market is closely watching reports from OPEC and the IEA for insights into the potential development of a long-anticipated global surplus. OPEC is scheduled to release its monthly report today, while the IEA will publish its annual energy outlook today, followed by its regular monthly snapshot on Thursday.
Natural gas reversed its earlier losses and reached a new swing high, supported by strong outflows of LNG feed gas. Flows to the eight major US LNG plants have averaged 17.8 bcfd so far in November, an increase from the record 16.7 bcfd in October, and are expected to rise further.
Gold
• Trading Range: 122300 to 125125
• Intraday Trading Strategy: Sell Gold Mini Dec Fut at 124550-124575 SL 125380 Target 123450/122900
Silver
• Trading Range: 152700 to 158500
• Intraday Trading Strategy: Buy Silver Mini Nov Fut at 155125-155150 SL 154080 Target 156650/157380
Crude Oil
• Trading Range: 5294 to 5520
• Intraday Trading Strategy: Sell Crude Oil Nov Fut at 5425-5435 SL 5505 Target 5350/5320
Natural Gas
• Trading Range: 388 to 412
• Intraday Trading Strategy: Buy Natural Gas Nov Fut at 394-395 SL 388.80 Target 405.50/412.0
Copper
• Trading Range: 997 to 1015
• Intraday Trading Strategy: Sell Copper Nov Fut at 1009-1010 SL 1015.0 Target 1005/1002
Zinc
• Trading Range: 297 to 306.80
• Intraday Trading Strategy: Sell Zinc Nov Fut at 304.5-305.0 SL 307.8 Target 302.5/299.0.
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