Gold prices edged up on increasing bets of a Fed rate cut - HDFC Securities
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GLOBAL MARKET ROUND UP
* Ambiguity over the outlook for monetary policy kept commodity markets uneasy. A stronger dollar weighed on investor appetite.
* Gold prices edged up on increasing bets of a Fed rate cut. In comments to the US Senate Banking Committee, Chair Powell said inflation had eased notably over the past couple of years and more good data would strengthen confidence that it’s moving sustainably toward 2%.
* Central bank purchases were in focus. The Czech Republic expanded its gold reserves in June as it executes a plan to diversify investments to make it more profitable. Its holdings rose to 41.5t from 39.7t in May. Serbia also bought 5t of gold last week, bringing its total to 46.5t.
* Base metal traded lower on Tuesday. The market is waiting for policy decisions from China’s Third Plenum next week, which could shape consumption. Mixed economic data are raising hopes that Beijing will instigate more stimulus to boost growth.
* Brent crude ended the session lower on some wild swings, as investors digested Powell’s testimony.
* Signs of weak demand weighed on sentiment. The cost of shipping crude oil along key routes in Asia has fallen, as supertankers take shorter trips, a sign of softening demand. Freight rates for VLCCs from the US to Asia have tumbled more than 20% since late May.
Gold
Trading Range: 72100 to 72800
Intraday Trading Strategy: Buy Gold Aug. above 72630 SL 72490 Target 72790
Silver
Trading Range: 91600 to 93400
Intraday Trading Strategy: Buy Silver Sept Fut above 93500 SL 93100 Target 93970
Crude Oil
Trading Range: 6750 to 6930
Intraday Trading Strategy: Buy Crude Oil July Fut above 6860 SL 6810 Target 6920
Natural Gas
Trading Range: 190 to 208
Intraday Trading Strategy: Buy Natural gas above 200 SL 195 Target 207
Copper
Trading Range: 860 to 883
Intraday Trading Strategy: Buy Copper July Fut above 873 SL 868 Target 880
Zinc
Trading Range: 267 to 277
Intraday Trading Strategy: Buy Zinc July Fut above 273 SL 270 Target 276.60
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