Industrial metal prices fell further amid fears of a prolonged tariff war - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold prices soared to near three-month highs on Wednesday, trading just below their record peak, fueled by safe-haven demand as traders considered the impact of President Donald Trump’s latest tariff threats against China and the European Union, which can hurt global economic growth.
* Trump said his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%. Investors fear that US President Donald Trump's tariff plans could trigger trade wars and increase market volatility.
* Crude oil edged lower after an industry report pointed to the first gain in US crude stockpiles since mid-November. Additionally, President Trump's threats of tariffs on China and the EU could potentially impact oil consumption and demand growth.
* Natural gas prices Wednesday rebounded from a swing low and rallied sharply as updated weather forecasts turned much colder for the beginning of next month, which will boost heating demand for natural gas. Traders’ focus now shifts to today's weekly EIA report, which is expected to show that natural gas inventories fell by -247 bcf—a much larger draw than the five-year average for this time of year of -167 bcf.
* Industrial metal prices fell further amid fears of a prolonged tariff war, which would impede global growth, put further pressure on China's economy, and reduce demand for industrial metals.
* Stocks in Asia got off to an uneven start in the wake of a US rally fueled by optimism over artificial intelligence spending.
Gold
Trading Range: 78850 to 79775
Intraday Trading Strategy: Buy Gold Mini Feb Fut at 79300 SL 79120 Target 79505/79600
Silver
Trading Range: 90700 to 92400
Intraday Trading Strategy: Sell Silver Mini Feb Fut at 91750 SL 92025 Target 91080
Crude Oil
Trading Range: 6450 to 6600
Intraday Trading Strategy: Sell Crude Oil Feb Fut at 6550 SL 6614 Target 6475
Natural Gas
Trading Range: 329 to 350
Intraday Trading Strategy: Buy Natural Gas Jan Fut at 342.80 SL 336.0 Target 350
Copper
Trading Range: 819 to 833
Intraday Trading Strategy: Sell Copper Jan Fut at 829 SL 833.0 Target 824
Zinc
Trading Range: 268-277
Intraday Trading Strategy: Sell Zinc Jan Fut at 274.0 SL 277.0 Target 271.0
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