Gold Breaks $3,800, Silver Hits 14-Year High Amid Global Uncertainty - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Bullion continued to rise from last week’s gains, with spot gold surging above $3,800 an ounce for the first time on Monday, while silver hit another fresh 14-year high in the international market. In the domestic market, both gold and silver reached new record highs, driven by strong bullish cues from overseas markets. A pullback in the US dollar, concerns over a potential US government shutdown, and geopolitical unrest have boosted demand for safe-haven metals.
Additionally, strong inflows into exchange-traded funds have further supported a long-term rally in precious metals. Crude oil prices declined amid signals that OPEC+ plans to increase production again in November, tempering last week’s rally. Such an increase could add supply to a market that is already expected to be oversupplied.
Meanwhile, there is also a possibility of an end to hostilities in Gaza, which could remove some of the war premium from prices. The US and Israel have agreed to a 20-point plan aimed at ending the conflict in Gaza; however, the prospects for peace remain uncertain without the direct involvement of the militant group Hamas. Natural gas futures closed higher, reversing earlier declines and reaching their highest level in almost two weeks.
This increase was driven by warmer forecasts in the eastern and southern regions, which contributed to reduced demand for cooling. Copper rose more than 2.0% on Monday as investors weighed supply setbacks against weak data from China’s manufacturing sector.
Supply disruptions, including FreeportMcMoRan Inc.'s declaration of force majeure at the Grasberg mine in Indonesia, have bolstered prices. On the macro front, today's data from China showed factory activity extended its decline into a sixth month, marking the longest slump since 2019.
Gold
• Trading Range: 115300 to 117780
• Intraday Trading Strategy: Buy Gold Mini Nov Fut at 116480-116500 SL 115950 Target 117080/117450
Silver
• Trading Range: 142095 to 145192
• Intraday Trading Strategy: Buy Silver Mini Nov Fut at 143775-143800 SL 143125 Target 144900/145192
Crude Oil
• Trading Range: 5545 to 5700
• Intraday Trading Strategy: Sell Crude Oil Oct Fut at 5665-5675 SL 5719 Target 5588/5550
Natural Gas
• Trading Range: 277 to 304
• Intraday Trading Strategy: Buy Natural Gas Oct Fut at 286-287 SL 280.80 Target 294/301
Copper
• Trading Range: 945 to 975
• Intraday Trading Strategy: Buy Copper Oct Fut above 963 SL 959.0 Target 967/974
Zinc
• Trading Range: 279 to 290
• Intraday Trading Strategy: Buy Zinc Oct Fut at 282.5-283.0 SL 280.0 Target 286.8/288.0
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