Gold edges up as markets weigh Trump trade moves, Fed rate policy - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold maintained a slight increase as investors evaluated two key factors: President Donald Trump's latest trade demands and the Federal Reserve's future interest-rate policy. Recent minutes from the Fed revealed a divergence among officials regarding the path of interest rates, primarily due to differing views on how tariffs might influence inflation. While some believe the inflationary impact of tariffs could be temporary, others see a risk of more persistent effects. The Fed currently projects two rate cuts in 2025, though this remains dependent on incoming economic data, especially concerning inflation and the labor market.
Oil prices remained largely stable as market participants weighed a significant increase in U.S. crude stockpiles and renewed American efforts to curtail Iranian oil exports. WTI crude oil fluctuated throughout the day before settling above $68 a barrel, extending its recent winning streak to a third consecutive day. This comes despite data from the EIA on Wednesday, showing that U.S. crude inventories surged by 7.1 million barrels last week, marking the largest increase since January. However, the bearish impact of rising inventories was offset by news that the U.S. Treasury Department sanctioned 22 foreign entities based in Hong Kong, the UAE , and Turkey for their roles in facilitating the sale of Iranian oil
LME Copper is expected to face renewed pressure during Thursday's trading session. This comes after President Donald Trump confirmed a 50% tariff on U.S. copper imports, which is set to take effect from August 1, 2025. LME three-month copper prices already experienced a 1.6% decline on Wednesday, marking their fifth consecutive day of losses. If the downward trend continues for a sixth day on Thursday, it would represent the longest losing streak for LME copper in a year
Gold
• Trading Range: 95780 to 97650
• Intraday Trading Strategy: Buy Gold Mini Aug Fut at 96450 SL 96480 SL 96020 Target 97300 & 97580
Silver
• Trading Range: 105910 to 107750
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 106700 SL 105700 Target 108000
Crude Oil
• Trading Range: 5730 to 5910
• Intraday Trading Strategy: Buy Crude Oil July 5810 SL 5750 Target 5890
Natural Gas
• Trading Range: 280 to 309
• Intraday Trading Strategy: Sell Natural Gas Jul Fut at 303-304 SL 312 Target 292/288
Copper
• Trading Range: 875 to 895
• Intraday Trading Strategy: Sell Copper July Fut at 886 SL 892 Target 878
Zinc
• Trading Range: 253 to 262
• Intraday Trading Strategy: Buy Zinc July Fut at 258 SL 255 Target 262
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