Natural Gas Hits Swing Highs Amid Cooler US Weather Outlook - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold rose as President Donald Trump imposed tariffs on Canada, Mexico, and China, triggering an investor flight to haven assets. Trump’s widening trade war drew swift retaliation from Canada, which announced phased levies on $107 billion worth of US goods, as well as China, which imposed its own tariffs, mainly on American agricultural shipments.
* Fears that the US economy could tip into stagflation are also fueling renewed demand for gold after a sharp correction last week.
* A host of bearish factors, such as OPEC+ supply hikes and the welter of trade tariffs, contributed to the extension of crude oil's loss on Tuesday. Given the negativity in the market, the next stop for prices will likely be a multi-year low.
* Natural gas surged to fresh swing highs on Tuesday as prices were supported by the outlook for cooler temperatures in the western half of the US. Furthermore, the beginning of US tariffs of 10% on Tuesday on Canadian natural-gas imports will put upward pressure on US natural-gas prices since US importers will have to pay those tariffs.
* Copper and zinc fell on Tuesday due to President Donald Trump's fresh tariffs against China and Beijing's swift response. The trade war has fueled worries about demand for metals. China on Tuesday announced duties as high as 15% on US agricultural goods and banned trade with some defense companies after the Trump administration doubled a blanket levy on all imports from the Asian country.
* Meanwhile, investors focus on measures that China may take to shore up domestic demand during China’s annual National People’s Congress, which begins today.
Gold
Trading Range: 85450 to 86320
Intraday Trading Strategy: Buy Gold Mini Apr Fut at 85850 SL 85600 Target 86180
Silver
Trading Range: 95935 to 97480
Intraday Trading Strategy: Buy Silver Mini Apr Fut at 96150 SL 95700 Target 97300
Crude Oil
Trading Range: 5820 to 6000
Intraday Trading Strategy: Sell Crude Oil Mar Fut at 5950 SL 6005 Target 5875
Natural Gas
Trading Range: 362 to 397
Intraday Trading Strategy: Sell Natural Gas Mar Fut at 384.0 SL 394.0 Target 370/365
Copper
Trading Range: 856 to 875
Intraday Trading Strategy: Buy Copper Mar Fut at 862.50 SL 859.0 Target 867
Zinc
Trading Range: 265-274
Intraday Trading Strategy: Buy Zinc Mar Fut at 267.0 SL 264.95 Target 271
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