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GLOBAL MARKET ROUND UP

* Gold slipped as the dollar rallied and bond yields gained amid speculation that central banks will keep interest rates elevated for longer to rein in inflation. A gauge of greenback strength rose for a fourth day, soaring on Monday to the highest level this year.

* The yield on 10- and 30-year US Treasury notes surged to new multiyear highs on Monday, with gains fueled by expectations the Federal Reserve will hold interest rates high.

* The price of base metals declined as China’s economic recovery lost momentum and global monetary tightening hurt the outlook for demand.

* The Fed will need to raise rates one more time this year and keep policy tighter for longer if the US economy is stronger than expected, Neel Kashkari said.

* The U.S. government is barreling towards a partial shutdown Sunday morning. A warning that a US government shutdown would reflect poorly on America’s credit rating from Moody’s Investor Service did little to shift market sentiment on Monday

MCX Gold Future

Trading Strategy: Gold prices extended their losses on Monday. Comex spot gold prices retested last week’s low of $1913. We believe gold prices are likely to decline further to the $1901 level if the price breaks support of $1913. MCX Gold December future has resistances at 59400/59580 and supports at 59080/58900 for the day

MCX Silver Future

Trading Strategy: The MCX Silver December future price turned lower and closed with a loss of around 1.60% on Monday. We anticipate the silver price to consolidate in a broader range of 71300 to 73080. A breakout below 71300 will drag prices to 70900/70500. Sell silver December future at 72050 for a target of 71300–70900; keep stop loss at 73080

MCX Crude Oil Future

Trading Strategy: MCX Crude Oil's October future registered a loss in the previous session. Crude oil prices are expected to correct further as technical indicators suggest a price in an overbought zone. MCX crude oil October future has support at 7350 and resistance at 7500. The price is expected to trade in this range with a negative bias.

MCX Natural Gas Future

Trading Strategy: The natural gas October future has immediate support at 236.80; if prices break this support, the fall will extend to 233/229.0 levels. Sell natural gas in October at 242 for a target of 233 and keep stoploss at 246.0.

MCX Copper Future

Trading Strategy: Copper prices on the MCX fell more than 0.50% on Monday due to a weak demand outlook and improved supply. Copper inventories held at LME warehouses have jumped in the past two months, rebounding from critically low levels. The MCX Copper October future is expected to trade in the range of 709 to 721. 

MCX Zinc Future

Trading Strategy: MCX Zinc October future consolidated in the upper range from the last few sessions. We expect the zinc price to continue to consolidate in the range of 223 to 229, with a positive bias for the day. Buy Zinc October future at 225.50 TGT and keep stop loss at 224.0.

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