Gold futures closed with a moderate positive note on Tuesday amid mixed global cues - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold futures closed with a moderate positive note on Tuesday amid mixed global cues. Signs of improving global trade deals and resilient short-term U.S. economic data have boosted risk appetite and strengthened the U.S. dollar, which poses significant headwinds for bullion. On the other hand, persistent geopolitical tensions and uncertainty surrounding inflation, along with central bank gold purchases, have provided equally strong tailwinds.
* Furthermore, investors are now looking for the outcome of three major forthcoming events: tariff negotiations, Federal Reserve interest-rate decisions, and U.S. nonfarm payroll data. These events may offer further direction for the dollar index and bullion in the forthcoming session.
* Crude oil prices rallied to a fresh five-week high, buoyed by stronger-than-expected U.S. economic data and the threat of additional sanctions on Russian energy exports. President Trump warned Russia of "secondary sanctions" if it does not agree to a ceasefire in Ukraine within 10 to 12 days, while the Kremlin indicated there would be no change in its stance.
* Natural gas prices recovered from a multi-week low, closing with a gain of over 3.0% on Tuesday. Forecasts of extreme heat in August, which raised demand expectations, drove this increase. Meteorologists are predicting hotter-than-normal temperatures across much of the US, especially in the Southeast, mid-South, and Midwest. This weather forecast is expected to lead to higher air conditioning usage and an increase in gas consumption within the power sector.
* Industrial metals traded mixed on Tuesday, as traders are approaching the market with caution because US-China trade talks in Stockholm concluded without an agreement to extend the current truce.
Gold
• Trading Range: 97780 to 99480
• Intraday Trading Strategy: Buy Gold Mini Sep Fut at 98605-98620 SL 98350 Target 98925 & 99150
Silver
• Trading Range: 111900 to 115195
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 113300-113325 SL 112180 Target 114150/115050
Crude Oil
• Trading Range: 5905 to 6175
• Intraday Trading Strategy: Buy Crude Oil Aug Fut 6015-6019 SL 5950 Target 6125/6175
Natural Gas
• Trading Range : 262 to 288
• Intraday Trading Strategy: Buy Natural Gas Aug Fut at 271-272 SL 266.0 Target 279/282
Copper
Trading Range: 888 to 906
Intraday Trading Strategy: Buy Copper Aug Fut at 897 SL 892 Target 903/905
Zinc
• Trading Range: 264 to 274
• Intraday Trading Strategy: Buy Zinc Aug Fut at 267.0 SL 264.80 Target 270.8/272.0
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