Gold prices advanced on Tuesday, buoyed by a dip in the US dollar and safe haven buying - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold prices advanced on Tuesday, buoyed by a dip in the US dollar and safe haven buying. The US dollar index declined more than 1.0% in the previous session. Investors continue to express concern about the potential impact of U.S. President Donald Trump's policies during his second term. US President Donald Trump has announced that he is likely to impose tariffs on Mexico and Canada early next month, with other countries still under consideration. Implementing Trump's tariff plan could potentially ignite a trade war, thereby boosting the demand for safe-haven assets like gold
Crude oil declined as President Donald Trump threatened a tariff on China, raising concerns over trade wars on several fronts after he said hefty levies on Canada and Mexico were being considered. The prospect of a renewed global trade conflict has bearish implications for commodities like oil and base metals, given the risks to consumption and growth.
Natural gas Tuesday tumbled to a one-week low as weather forecasts shifted warmer for the eastern and central parts of the US for late January and early February, which will reduce heating demand for natural gas. In addition to this A historic winter storm in Texas threatened natural gas shipments. The state’s grid operator declared a transmission emergency, and the Freeport LNG complex shut down due to power disruptions.
Base metals traded mixed amid investors remaining cautious about President Trump's trade policy. Caution also dominated sentiment ahead of the Lunar New Year holiday in China, as well as key interest rate decisions from the Bank of Japan and the US Federal Reserve in the coming days.
Gold
Trading Range: 78925 to 79780
Intraday Trading Strategy: Buy Gold Mini Feb Fut at 79300 SL 79175 Target 79520/79580
Silver
Trading Range: 91880 to 93780
Intraday Trading Strategy: Buy Silver Mini Feb Fut at 92050 SL 91325 Target 93080
Crude Oil
Trading Range: 6475 to 6680
Intraday Trading Strategy: Buy Crude Oil Feb Fut at 6520 SL 6475 Target 6635
Natural Gas
Trading Range: 309 to 329
Intraday Trading Strategy: Sell Natural Gas Jan Fut below 322.0 SL 327.0 Target 315/312
Copper
Trading Range: 824 to 842
Intraday Trading Strategy: Buy Copper Jan Fut at 829 SL 824.0 Target 837/842
Zinc
Trading Range: 274-280
Intraday Trading Strategy: Buy Zinc Jan Fut at 275. 0 SL 272.0 Target 279/280
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