Gold pared losses after President Donald Trump announced plans to impose 25% tariffs on goods from Japan and South Korea starting August 1 - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold pared losses after President Donald Trump announced plans to impose 25% tariffs on goods from Japan and South Korea starting August 1.
The move marks the first of what the US president indicated would be a series of written warnings and trade deals announced on Monday.
The two Asian countries now face a tight three-week deadline to either open their markets to American products or increase production within the US to avoid these unilateral tariffs.
This decision is part of Trump's effort to overhaul US trade policies, which have consistently created uncertainty for markets and, as a result, increased demand for gold as a safe-haven asset.
Crude oil prices reversed an early decline on Monday, despite a larger-than-expected supply increase announced by OPEC+ for August over the weekend.
Officials from the group pointed to favorable summer demand as a reason for their optimism that the additional barrels could be absorbed. Additionally, Saudi Arabia raised the price of its main crude grade for Asia.
Meanwhile, in the Middle East, a second vessel was targeted near Yemen on Monday, just hours after Iranian-backed Houthis claimed responsibility for an earlier attack on another ship in the same region. This situation contributed to a risk premium on oil prices..
Natural gas on Monday bounced back from a 6-week low and ended slightly higher, as short covering occurred after updated weather forecasts predicted above-normal temperatures in the central US. Copper and other base metals moved lower on Monday as tariff-related uncertainty and recovery in the US dollar weighed on base metal prices.
Gold
• Trading Range: 96680 to 97795
• Intraday Trading Strategy: Buy Gold Mini Aug Fut above 97300 SL 97005 Target 97620/97795
Silver
• Trading Range: 107580 to 109625
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 107750-107775 SL 106925 Target 108780/109625
Crude Oil
• Trading Range: 5680 to 5900
• Intraday Trading Strategy: Sell Crude Oil Jul Fut at 5810-5815 SL 5900 Target 5720/5680
Natural Gas
• Trading Range: 280 to 309
• Intraday Trading Strategy: Buy Natural Gas Jul Fut at 287-288 SL 280 Target 295/303
Copper
• Trading Range: 884 to 905
• Intraday Trading Strategy: Buy Copper Jul Fut at 888-889 SL 884 Target 897
Zinc
• Trading Range: 252 to 259
• Intraday Trading Strategy: Buy Zinc Jul Fut at 253.0 SL 249.8 Target 257.0
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