Gold prices trimmed early gains and closed with a modest loss on Monday, as ongoing trade uncertainty continued to impact market sentiment - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold prices trimmed early gains and closed with a modest loss on Monday, as ongoing trade uncertainty continued to impact market sentiment.
US President Trump announced a new 30% tariff on imports from the European Union and Mexico, set to take effect on August 1.
This announcement follows last week's broader tariff package that targets over 20 countries, including Japan, South Korea, Canada, and Brazil, and imposes a steep 50% duty on copper imports. However, investors believe that negotiations could reduce these tariffs.
Furthermore, the hawkish remarks made by FED member Hammack, the recovery of the US dollar also exerted downward pressure on gold prices. Hammack stated that there is currently no need to cut interest rates. Meanwhile, the US dollar has recovered from a three-year low reached earlier this month and has closed with a gain of 0.23% on Monday.
Crude oil retreated from the day’s high and closed down by more than 2.0% as traders liquidated their long positions following President Trump’s announcement regarding Russia, which indicated no immediate threat to the oil market. President Trump threatened tariffs on Russia and countries that trade with Russia if a deal with Ukraine is not reached within 50 days. The 50-day deadline, which "maintains the possibility that the oil market will avoid any disruption," may have contributed to the negative price reaction.
Natural gas prices increased, hitting a one-week high on Monday, as short covering occurred in response to forecasts predicting hotter weather in the U.S. Base metals declined on Monday as renewed global trade tensions dampened risk appetite. Economic data from China presented a mixed picture. The country’s GDP grew by 5.2% in the second quarter compared to a year earlier, exceeding the estimate of 5.1%. However, consumption remained weak, with retail sales coming in at 4.8%, below the estimated 5.2%
Gold
• Trading Range: 97300 to 98450
• Intraday Trading Strategy: Buy Gold Mini Aug Fut at 97650-97675 SL 97300 Target 98125 & 98400
Silver
• Trading Range: 110980 to 114050
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 111400-111425 SL 110700 Target 113080/113980
Crude Oil
• Trading Range: 5605 to 5800
• Intraday Trading Strategy: Sell Crude Oil July 5775- 5780 SL 5850 Target 5680/5605
Natural Gas
• Trading Range: 288 to 312
• Intraday Trading Strategy: Sell Natural Gas Jul Fut at 303-304 SL 309 Target 292/288
Copper
• Trading Range: 866 to 895
• Intraday Trading Strategy: Sell Copper July Fut at 882-883 SL 888 Target 875/872
Zinc
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• Trading Range: 253 to 262
• Intraday Trading Strategy: Sell Zinc July Fut at 258.50 SL 262 Target 255.0
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