Gold steadied Tuesday after four straight sessions of declines - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold prices stabilised on Tuesday, following four consecutive sessions of declines that extended through Monday. This downward momentum was primarily attributed to the announcement of a new trade agreement between the United States and the European Union, which bolstered investor confidence and diminished demand for traditional safehaven assets in the dollar.
* China's demand for gold has decreased by 49% since reaching its peak in 2013, primarily due to elevated gold prices and a deceleration in economic growth. Nevertheless, according to the World Gold Council (WGC), the value of gold jewellery consumption continues to increase.
* Crude oil prices rallied amid renewed supply concerns following former U.S. President Donald Trump's ultimatum to Russian President Vladimir Putin to reach a truce with Ukraine within 10–12 days. Trump's earlier threat of 100% secondary tariffs raised fears of disrupted Russian oil flows. The rally was further supported by the European Union’s latest sanctions package, which includes a lower price cap on Russian crude and restrictions on refined products made from Russian oil in third countries.
* Market participants adopted a cautious stance in anticipation of the upcoming interest rate decision by the U.S. Federal Reserve, scheduled for later this week. With the potential for policy adjustments or changes in forward guidance, investors were reluctant to make significant moves ahead of the announcement.
* Collectively, the improved risk appetite stemming from geopolitical developments and the prudent positioning ahead of a major monetary policy decision contributed to a temporary pause in gold prices, and supply disturbance could support the crude oil prices
Gold
• Trading Range: 96430 to 98470
• Intraday Trading Strategy: Sell Gold Mini Aug Fut at 97750-97780 SL 98080 Target 97180 & 97050
Silver
• Trading Range: 112050 to 113800
• Intraday Trading Strategy: Sell Silver Mini Aug Fut at 113320-11450 SL 113850 Target 112010
Crude Oil
• Trading Range: 96430 to 98470
• Intraday Trading Strategy: Sell Gold Mini Aug Fut at 97750-97780 SL 98080 Target 97180 & 97050
Natural Gas
• Trading Range: 245 to 282
• Intraday Trading Strategy: Sell Natural Gas Aug Fut at 263, SL 272, Target 248
Copper
• Trading Range: 883 to 910
• Intraday Trading Strategy: Sell Copper Aug Future at 899, SL 910, Target 883
Zinc
• Trading Range: 262 to 271
• Intraday Trading Strategy: Sell Zinc Aug Fut at 268, SL 272 Target 263
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