Natural Gas Recovers from Day`s Low, Ends Higher on Short-Covering - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
* Gold hit a fresh record high and settled up by 1.26% in the previous session. Safe haven flows are continuing to outshine yellow metals as the global risk sentiment has been increased, following the new auto tariffs announced by US President Donald Trump on Wednesday.
* Furthermore, the impending announcement of Trump's reciprocal tariff next week heightens market uncertainty, consequently driving up the risk premium in gold
* Crude oil settled moderately higher on Thursday, buoyed by a weaker US dollar, and Thursday's better-than-expected US economic reports signaled strength in the US economy that was positive for energy demand and crude prices. Crude also had carryover support from Wednesday when weekly EIA crude inventories unexpectedly declined 3.3 million bbl.
* Natural gas recovered from the day’s low and settled higher on Thursday on the back of a short-covering rally after a recent sharp fall. Meanwhile, the EIA reported a bigger-than-expected 37 Bcf injection into storage last week.
* Profit-taking caused the copper price to correct from recent highs. As the tariffdriven rally loses momentum, traders are unwinding their longs. Meanwhile, LME copper continues to trade at a record discount to futures contracts on New York's Comex, with the spread creating significant incentives for traders to ship to the U.S.
* The market participant awaits the U.S. Personal Consumption Expenditures data due later in the day, which could influence expectations for rate cuts this year, following the Fed's recent decision to hold its benchmark rate steady.
Gold
Trading Range: 88450 to 89500
Intraday Trading Strategy: Buy Gold Mini May Fut at 88925-88950 SL 88680 Target 89425
Silver
Trading Range: 99700 to 102400
Intraday Trading Strategy: Buy Silver Mini Apr Fut at 100550 SL 99800 Target 101900
Crude Oil
Trading Range: 5925 to 6100
Intraday Trading Strategy: Buy Crude Oil Apr Fut at 5980 SL 5935 Target 6075
Natural Gas
Trading Range: 322 to 350
Intraday Trading Strategy: Sell Natural Gas Apr Fut at 339-340 SL 347.8 Target 329/325
Copper
Trading Range: 888 to 912
Intraday Trading Strategy: Sell Copper Apr Fut at 903-904 SL 909.0 Target 894/892
Zinc
Trading Range: 267-280
Intraday Trading Strategy: Sell Zinc Apr Fut at 273.50 SL 275.80 Target 270
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