Gold neared $2,700/oz Friday after Fed’s 0.25% rate cut post-policy meet - HDFC Securities
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GLOBAL MARKET ROUND UP
Gold was trading near $2,700 per ounce on Friday after the Federal Reserve announced a quarter-point rate cut at the end of its two-day policy meeting.
Fed Chair Jerome Powell refrained from providing explicit indications on future interest rate paths during his press talk, emphasizing the central bank's ability to adapt to economic data. Furthermore, Powell stated that the outcomes of Tuesday's presidential election, in which the elected government proposed measures like broad-based tariffs, tax cuts, and probable large-scale deportations of immigrants, are unlikely to influence the Fed's near-term policy direction.
Crude oil prices rose slightly on Thursday amid mixed global cues. Traders examined the impact of Trump's presidential victory as well as the Federal Reserve's recent rate cut and the dollar's retreat. Meanwhile, projections indicate that Hurricane Rafael, which made landfall in Cuba with Category 3 winds, will diminish before hitting the US Gulf Coast, thereby minimizing potential damage to oil production.
Natural gas prices declined on Thursday due to a higher-than-expected weekly storage report.
Copper and other base metals rebounded sharply on Thursday as optimism grew that potential US tariffs on Chinese goods could prompt Beijing to introduce more aggressive stimulus measures. In addition to this better-than-expected trade data boosting trader sentiment, China's trade surplus widened more than expected in October, with exports surging. These figures added to hopes that China’s economic recovery could gain momentum, further supporting metals prices
Gold
Trading Range: 76750 to 77905
Intraday Trading Strategy: Sell Gold Mini Dec Fut at 77400 SL 77620 Target 77025
Silver
Trading Range: 91300 to 93650
Intraday Trading Strategy: Buy Silver Mini Nov Fut above 92325 SL 91580 Target 93350
Crude Oil
Trading Range: 5975 to 6150
Intraday Trading Strategy: Sell Crude Oil Nov Fut at 6080 SL 6150 Target 5975
Natural Gas
Trading Range: 215 to 236
Intraday Trading Strategy: Sell Natural Gas Nov Fut below 224 SL 229.8 Target 219
Copper
Trading Range: 832 to 855
Intraday Trading Strategy: Buy Copper Nov Fut at 838-839 SL 833.0 Target 850/852
Zinc
Trading Range: 274-289
Intraday Trading Strategy: Buy Zinc Nov Fut at 281.0 SL 277.0 Target 284/287
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