Natural gas fell for the third straight day due to a lower demand outlook - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Bullion fell over 2.0% on Wednesday due to indications that the Federal Reserve will implement fewer rate cuts than previously expected, while diminishing tensions between the US and China reduced demand for safe-haven assets.
* The hawkish tone from several Federal Reserve members has also negatively impacted bullion. Mary Daly indicated that the strength of the economy gives policymakers the ability to be patient. Philip Jefferson noted that tariffs and related uncertainties could slow growth and increase inflation, but he believes that monetary policy is well-equipped to respond
* Yields on US Treasuries have increased because investors believe the Federal Reserve will delay lowering borrowing costs longer than previously expected. This expectation is fueled by a more optimistic economic outlook following the US-China trade truce.
* Crude oil retreated from the day’s high and closed in red as a report said Iran is willing to forgo nuclear weapons in a deal with the US in exchange for sanctions relief. Furthermore, the fall was extended after government data showed US crude stockpiles rose 3.45 million barrels, the biggest gain since March, overshadowing relief from the US-China trade truce and causing WTI futures to dip 0.8% to settle near $63 a barrel.
* Natural gas fell for the third straight day due to a lower demand outlook. Forecasts of mild weather in northern states are expected to reduce cooling demand, which counteracts the record heat in Texas. Trader attention has now turned to today's weekly storage report.
Gold
Trading Range: 90900 to 92080
Intraday Trading Strategy: Sell Gold Mini Jun Fut at 91950 SL 92400 Target 91420/90900
Silver
Trading Range: 93500 to 95480
Intraday Trading Strategy: Sell Silver Mini Jun Fut at 94750-94780 SL 95080 Target 93900/93750
Crude Oil
Trading Range: 5195 to 5380
Intraday Trading Strategy: Sell Crude Oil May Fut at 5325-5335 SL 5380 Target 5225
Natural Gas
Trading Range: 280 to 312
Intraday Trading Strategy: Sell Natural Gas May Fut at 303-304 SL 312 Target 294/288
Copper
Trading Range: 845 to 865
Intraday Trading Strategy: Sell Copper May Fut at 858.80 SL 865.0 Target 850
Zinc
Trading Range: 254 to 263
Intraday Trading Strategy: Sell Zinc May Fut at 262.0 SL 264.8 Target 259.0
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