Gold dipped further on Tuesday and extended losses due to diminishing safe haven demand and technical selling - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold dipped further on Tuesday and extended losses due to diminishing safe haven demand and technical selling. Selling accelerated during the midsession, and gold prices slid to a three-week low. This decline is attributed to technical selling that occurred after an intraday failure to maintain levels above the $4,000 psychological threshold.
However, in the Asian trading hours on Wednesday, gold steadied after a three-day sell-off, with dip buyers returning ahead of an expected interest-rate cut by the Federal Reserve.
Crude oil prices declined as increasing signs of oversupply dampened a significant rally that had been sparked by U.S. sanctions on key Russian producers last week. Transport across the world's oceans reached a record high, suggesting that excess supplies continue to grow. Additionally, OPEC+ may consider increasing production at a meeting scheduled for this weekend. Meanwhile, the full impact of the sanctions remains uncertain, with traders closely monitoring the actions of Chinese and Indian energy companies, who are leading buyers of Russian crude.
Natural gas prices fell during a volatile session, influenced by US forecasts predicting warmer temperatures for the first and second weeks of November, which are expected to decrease demand for natural gas. We expect that volatility in natural gas prices will persist as the expiration of the front-month futures in the US approaches.
Base metals traded at the upper end of the range amid optimism regarding US-China trade talks. On the macro front, investors are looking to two key events: a Fed meeting outcome due later today, where another quarter-point rate cut is seen as a near certainty, and tomorrow’s expected meeting between US President Donald Trump and Chinese counterpart Xi Jinping to seal a trade deal between the world’s top two economies.
Gold
* Trading Range: 117700 to 122900
* Intraday Trading Strategy: Buy Gold Mini Dec Fut at 118450-118500 SL 117700 Target 120465/121050
Silver
* Trading Range: 143680 to 149050
* Intraday Trading Strategy: Buy Silver Mini Nov Fut at 146050-146075 SL 146625 Target 148050/148900
Crude Oil
* Trading Range: 5225 to 5450
* Intraday Trading Strategy: Sell Crude Oil Nov Fut at 5365-5375 SL 5450 Target 5280/5225
Natural Gas
* Trading Range: 329 to 355
* Intraday Trading Strategy: Sell Natural Gas Nov Fut at 342-343 SL 351.80 Target 332/329.0
Copper
* Trading Range: 1004 to 1026
* Intraday Trading Strategy: Buy Copper Nov Fut at 1006-1007.0 SL 997.0 Target 1019/1024
Zinc
* Trading Range: 297 to 305.80
* Intraday Trading Strategy: Buy Zinc Nov Fut at 300.5 SL 297.0 Target 304.2/305.8.
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