Gold dips as inflation fuels Fed rate-hold speculations - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold prices fell on Tuesday as the latest inflation report heightened speculation that the Federal Reserve might keep interest rates steady for the time being. The Consumer Price Index (CPI) report showed that consumer prices rose 2.7% year over year last month, which is an acceleration from May's 2.4% increase and consistent with economists' forecasts. This data suggests that companies are beginning to pass tariff costs onto consumers.
Meanwhile, weak demand from the investment sector has also impacted gold prices. ETF purchasing, which has been a significant factor this year, has been declining in recent weeks, reflecting a cooling in investor sentiment.
Furthermore, US bond yields and the dollar pushed higher after the release of US CPI data, with traders expecting the US central bank to keep rates unchanged at its July meeting and a lower chance of more than one rate reduction by the end of this year.
Crude oil prices closed with a modest loss on Tuesday, influenced by a strengthening US dollar and skepticism among traders regarding US President Donald Trump’s plan to pressure Moscow, which they believe will not disrupt Russian exports. Additionally, Kazakhstan continues to exceed its production quota under the OPEC and allied producers' agreement, despite having no intentions of leaving the group. Meanwhile, US crude inventories rose by 800,000 barrels last week, according to the API report. Attention has now shifted to today’s government weekly inventory report
Natural gas prices increased for the second consecutive day on Tuesday. The primary factor driving this rise was warmer weather forecasts in the U.S. and near-record levels of LNG exports
Copper prices remained stable within a narrow range as markets processed the implications of US President Donald Trump’s recently announced 50% tariff on copper imports.
Gold
• Trading Range: 96480 to 98080 .
• Intraday Trading Strategy: Sell Gold Mini Aug Fut at 97750-97780 SL 98080 Target 97180 & 97050
Silver
• Trading Range: 110300 to 112745
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 110900-110925 SL 109500 Target 112080/112450
Crude Oil
• Trading Range: 5620 to 5805
• Intraday Trading Strategy: Sell Crude Oil July below 5680 SL 5725 Target 5620
Natural Gas
• Trading Range: 288 to 312
• Intraday Trading Strategy: Buy Natural Gas Jul Fut at 297-279.80 SL 292.0 Target 305/309
Copper
• Trading Range: 872 to 895
• Intraday Trading Strategy: Buy Copper July Fut at 877-878 SL 872 Target 884
Zinc
• Trading Range: 252 to 259
• Intraday Trading Strategy: Sell Zinc July Fut at 256.50 SL 259.80 Target 252.0/250.0.
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