Gold declined as demand for safe-haven assets decreased following US President Donald Trump's announcement that Israel and Iran had reached a ceasefire agreement - HDFC Securities
GLOBAL MARKET ROUND UP
Gold declined as demand for safe-haven assets decreased following US President Donald Trump's announcement that Israel and Iran had reached a ceasefire agreement. However, there has been no immediate response from either Iran or Israel. Spot gold is trading 0.6% lower, below $3,350 an ounce, in Asian trading hours. Additionally, the sharp rise in the rupee has put further pressure on domestic commodity prices.
On the macro front, manufacturing demonstrated steady growth in June, according to the S&P Global flash factory PMI.
Additionally, US existing-home sales increased by 0.8%, reaching an annualized total of 4.03 million last month. Crude oil prices plummeted as Iran's retaliatory strikes on a US air base in Qatar were less severe than investors feared, allaying concerns that the conflict would immediately disrupt Middle East oil supplies.
The market had initially feared that Iran's retaliation would involve a closure of the Strait of Hormuz chokepoint, but the barrage was intercepted and did not result in any casualties. Fall was extended in Asian trading hours following Donald Trump's announcement as US President of a tentative ceasefire between Iran and Israel. Natural gas prices declined by more than 3.050%, contributing to a significant reversal in the global energy sector due to a potential ceasefire between Iran and Israel.
The Iran-Israel ceasefire erased fears of supply disruptions. Aluminum briefly spiked to a three-month high on fears that the escalating conflict in the Middle East could disrupt supplies before paring gains.
Investors will closely monitor Federal Reserve Chairman Jerome Powell's testimony in the upcoming days for any indications of monetary easing.
Gold
• Trading Range: 97350 to 99150
• Intraday Trading Strategy: Sell Gold Mini Jul Fut at 97925-97950 SL 98300 Target 97480
Silver
• Trading Range: 104080 to 106750
• Intraday Trading Strategy: Buy Silver Mini Jun Fut at 104700-104750 SL 103900 Target 105780/106050
Crude Oil
• Trading Range: 5575 to 6025
• Intraday Trading Strategy: Sell Crude Oil Jun Fut at 5850-5875 SL 5980 Target 5680
Natural Gas
• Trading Range: 305 to 332
• Intraday Trading Strategy: Sell Natural Gas Jun Fut at 322-324 SL 333 Target 309/305
Copper
• Trading Range: 872 to 894
• Intraday Trading Strategy: Buy Copper Jul Fut at 873-874 SL 869 Target 880/882
Zinc
• Trading Range: 250 to 259
• Intraday Trading Strategy: Buy Zinc Jul Fut at 252.5 SL 248.8 Target 257.0
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