Gold rose as traders bet on Fed rate cuts after Bessent urged lower costs - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
*Gold advanced as traders strengthened their bets on interest-rate cuts by the Federal Reserve after Treasury Secretary Scott Bessent urged the central bank to lower borrowing costs. Bessent made his most explicit call yet for the Fed to initiate a cycle of interest-rate cuts, suggesting that the central bank's benchmark should be at least 1.5 percentage points lower than its current level.
*Markets are anticipating a 50-basis point cut by the Fed in September. Meanwhile, both the US dollar and Treasury yields have declined, contributing to an increase in gold prices. The US dollar reached a fresh two-week low, while benchmark U.S. 10-year Treasury yields also fell
*Crude oil prices continued to decline on Wednesday due to a larger-than-expected increase in US crude inventories, coupled with a bearish report from the International Energy Agency that contributed to a negative market outlook. According to government data, US crude stockpiles rose by approximately 3 million barrels last week, reaching their highest level in two months.
*The IEA also indicated that global oil inventories are set to experience a record surplus next year, following the US government's similar forecast for a surplus in 2026. Attention has now shifted to the upcoming meeting between US President Trump and President Putin on Friday; the outcome of this meeting may offer further direction for both the bullion and oil markets
*Natural gas prices closed with a modest gain on Wednesday, driven by a short-covering rally after recently hitting a multi-month low. Traders are now seeking additional insights regarding storage levels. The consensus anticipates that today's weekly EIA report will indicate an increase of 54 bcf, which would be significantly higher than the average increase of 33 bcf for this week.
Gold
• Trading Range: 99020 to 100180
• Intraday Trading Strategy: Sell Gold Mini Sep Fut at 99900-99925 SL 100175 Target 99525/99350
Silver
• Trading Range: 112550 to 116480
• Intraday Trading Strategy: Buy Silver Mini Aug Fut at 114050-114075 SL 112900 Target 115480/116080
Crude Oil
• Trading Range: 5380 to 5725
• Intraday Trading Strategy: Buy Crude Oil Aug Fut at 5425-5435 SL 5350 Target 5520/5580
Natural Gas
• Trading Range: 235 to 275
• Intraday Trading Strategy: Sell Natural Gas Aug Fut at 252-254 SL 261.80 Target 247.5/242
Copper
• Trading Range: 875 to 897
• Intraday Trading Strategy: Sell Copper Aug Fut at 891-892 SL 897 Target 884/880
Zinc
• Trading Range: 265 to 274
• Intraday Trading Strategy: Sell Zinc Aug Fut at 269.80 SL 272.8 Target 265.50
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