IGI Logo

GLOBAL MARKET ROUND UP

Comex gold prices slipped to a five-week low, weighed down by strong gains in the US dollar and bond yields amid speculation that central banks will keep interest rates elevated for longer to rein in inflation.

On the macro front, economic data released on Tuesday showed that US CB consumer confidence for September rose by 103.0 from 108.7 in August. The figures dropped to a four-month low and indicated the impact of higher interest rates. Meanwhile, building permits came in at 1.541M in August, up from the previous reading of 1.443M.

Crude oil edged higher as a tightening market outweighed gains in the dollar and a broader risk-off tone driven by the outlook for higher interest rates.

The US is on track for an Oct. 1 government shutdown despite incremental progress late Tuesday in the House and Senate on rival spending bills.

Meanwhile, investors focus shifts to the US Core Personal Consumption Expenditure Price Index, the Fed's preferred measure of consumer inflation, released on Friday.

MCX Gold Future

Trading Strategy: Gold prices declined on Tuesday. Comex spot gold prices slipped below the $1900 level due to strength in the US dollar index and technical selling. We believe gold prices are likely to decline further to the $1892/$1884 level after the price broke support at $1901. MCX Gold December future has resistance at 59080 and supports at 58700/58580 for the day. 

MCX Silver Future

Trading Strategy: The MCX Silver December future price extended its fall and closed with a loss of around 0.50% on Tuesday. We expected the short-term trend to remain bearish in silver. A breakout below 70900 will drag prices to retest levels of 70450/70070. Sell silver in the December future at 71300 for a target of 70450; keep stopping the loss at 71680.

MCX Crude Oil Future

Trading Strategy: MCX Crude Oil's October future reversed its earlier losses and settled with gains of 1.0% on Tuesday. After a strong reversal in the previous session, we believe the crude oil price will consolidate in the range of 7480 to 7700 with a positive bias. Traders focus now shifts to today’s US government weekly inventory report. MCX crude oil October future buy at 7580 for a target of 7670; keep stop loos at 7555.

MCX Natural Gas Future

Trading Strategy: The natural gas October future has strong support at 233; until price trades above this level, fresh selling should be avoided. We expect the natural gas price to trade in the range of 233 to 247. Buy natural gas in the future at 238.80 TGT 246 and keep stop loss 233.

MCX Copper Future

Trading Strategy: Weak demand and a strong US dollar continued pressure on copper prices. MCX Copper's October future is likely to consolidate in the range of 705 to 719 with a negative bias. Sell copper in the October future at 712–713 for objective 705 and keep stoploss at 716.80. 

MCX Zinc Future

Trading Strategy: MCX Zinc October future stuck in the upper range of 221 to 227 from the last few sessions. We expect the zinc price to likely retest lower end of range 221 and price will correct further if it breaks support of 221. Sell Zinc October future at 224.0 TGT 220.80/219.0 and keep stop loss at 225.8.

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337