The Bank of Japan is widely expected to raise interest rates on Friday - HDFC Securities Ltd
GLOBAL MARKET ROUND UP
Gold pared losses following President Donald Trump reiterating his tariff threats and urging lower interest rates as he addressed world leaders gathered in Davos on Thursday. Trump stated on Thursday that he would like to see interest rates "come down a lot" and suggested that actions to keep pricing pressures under control were a crucial precondition to lower rates.
On the macro front, initial claims have now climbed for two weeks in a row, and the trend has gradually moved higher from this time a year ago. Initial claims increased by 6,000 to 223,000 in the week ended Jan. 18 against the forecast of 220,000 applications.
The Bank of Japan is widely expected to raise interest rates on Friday, while the Fed is anticipated to hold rates, and the ECB is expected to cut rates next week.
Crude oil prices extended declines after Donald Trump raised the prospect of trade wars and said he would ask Saudi Arabia and OPEC to lower prices in his first few days as the new US president. Meanwhile, US crude stockpiles declined for a ninth week, according to a report on Thursday from the EIA. Inventories are lower than the five-year seasonal average for this time of the year and went against an earlier industry report that estimated a build.
Natural gas on Thursday gave up an early advance and posted moderate losses after weekly natural gas supplies fell less than expected.
Metals from copper to aluminum moved higher in the Asian trading hours on Friday as US President Donald Trump said he’d rather not use tariffs against China’s exports, easing trade concerns for now and triggering a selloff in the dollar.
Gold
Trading Range: 79380 to 80300
Intraday Trading Strategy: Buy Gold Mini Feb Fut at 79700 SL 79525 Target 80050
Silver
Trading Range: 91050 to 93780
Intraday Trading Strategy: Buy Silver Mini Feb Fut at 91600-91625 SL 91100 Target 92500
Crude Oil
Trading Range: 6375 to 6580
Intraday Trading Strategy: Sell Crude Oil Feb Fut at 6480 SL 6525 Target 6375
Natural Gas
Trading Range: 322 to 345
Intraday Trading Strategy: Sell Natural Gas Jan Fut below 333 SL 337.80 Target 329/324
Copper
Trading Range: 826 to 845
Intraday Trading Strategy: Sell Copper Jan Fut at 829 SL 833.0 Target 824
Zinc
Trading Range: 268-277
Intraday Trading Strategy: Buy Zinc Jan Fut at 269.50 SL 267. 0 Target 272.80
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