Gold Gains as U.S. Retail Sales Miss Expectations, Dollar Drops - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold extended gains on Thursday as the dollar and yields moved lower after U.S. retail sales rose less than expected last month. US retail sales rose by 0.4% in December, down from a revised 0.8% in November and under expectations for a 0.5% monthly rise. This data follows a drop in the core consumer price index, reported on Wednesday. Recent US macro data spurred hopes the Federal Reserve would speed interest rate cuts, lowering the dollar and yields.
* Crude prices retreated on Thursday amid speculation that President-elect Trump will ease sanctions on Russian energy exports to facilitate a diplomatic accord between Russia and Ukraine. Crude prices are also under pressure as the ceasefire between Israel and Hamas paves the way for an eventual return of ships to the Red Sea.
* Natural gas prices rose significantly on Thursday on the back of the forecast for colder weather in the United States, which would increase heating demand for natural gas, pushing prices upward. Natural gas prices were also supported Thursday by a substantial drop in weekly supplies after the EIA announced that natural gas stocks for the week ending January 10 fell -258 bcf, close to predictions of -260 bcf and considerably greater than the five-year average for this time of year of -128 bcf.
* Base metal gained in the previous session, supported by a pullback in the US dollar and optimism about the demand outlook. Aluminum prices surged to their highest level since May 2022.Copper prices have steadily risen since the new year due to Chinese restocking and Chile's lowered production outlook.
Gold
Trading Range: 78750 to 79580
Intraday Trading Strategy: Buy Gold Mini Feb Fut 78800 SL 78580 Target 79080/79150
Silver
Trading Range: 91300 to 93680
Intraday Trading Strategy: Buy Silver Mini Feb Fut at 92050-92075 SL 91625 Target 93150
Crude Oil
Trading Range: 6650 to 6880
Intraday Trading Strategy: Buy Crude Oil Feb Fut at 6720 SL 6675 Target 6850
Natural Gas
Trading Range: 345 to 380
Intraday Trading Strategy: Buy Natural Gas Jan Fut at 356 SL 343.0 Target 366/375
Copper
Trading Range: 829 to 847
Intraday Trading Strategy: Buy Copper Jan Fut at 837.0 SL 832.0 Target 845
Aluminium
Trading Range: 247-257
Intraday Trading Strategy: Buy Aluminium Jan Fut at 252.50 SL 250.0 Target 255
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