The dollar index fell to a two-week low on Monday, which was beneficial for oil prices- HDFC Securities
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GLOBAL MARKET ROUND UP
Gold held steady in the Asian trading session on Tuesday, as the market braced for a tight US election and a Federal Reserve rate decision later in the week. Uncertainty surrounding the presidential elections on Tuesday has benefited bullion in recent weeks.
A victory for Donald Trump might send the precious metal higher, since he has promised to hike trade duties, thus fueling inflation. However, because to the tight nature of the race, the ultimate outcome may not be known for several days.
Crude oil rose to one-week highs on Monday and closed modestly higher. The dollar index fell to a two-week low on Monday, which was beneficial for oil prices. Crude prices also climbed after OPEC+ decided to delay its December output rise by one month. Furthermore, rising Middle East tensions are bolstering crude after the Wall Street Journal reported that Iran is contemplating a retaliation on Israel with more powerful weapons. However, a weak demand outlook from China, a bearish factor for oil prices, caps further upside.
Natural gas prices surged more than 4.0% on Monday, with another storm likely to hit the Gulf of Mexico this week, Freeport LNG's export plant in Texas returning to business, and stronger-than-expected demand.
Copper gained more than 1.0% on Monday, buoyed by a weaker dollar and optimism for additional stimulus measures from China, the world’s top consumer. China’s National People’s Congress begins its five-day meeting, authorities are expected to unveil further details on debt and fiscal initiatives aimed at revitalizing economic growth.
All eyes now shift to the outcome of the US election; in the evening session, volatility is expected to increase in financial markets.
Gold
Trading Range: 77850 to 78700
Intraday Trading Strategy: Buy Gold Mini Dec Fut at 78120 SL 77900 Target 78380/78580
Silver
Trading Range: 92900 to 95300
Intraday Trading Strategy: Sell Silver Mini Nov Fut 94550-94600 SL 95080 Target 93650
Crude Oil
Trading Range: 5920 to 6105
Intraday Trading Strategy: Buy Crude Oil Nov Fut at 6005 SL 5950 Target 6080/6120
Natural Gas
Trading Range: 224 to 245
Intraday Trading Strategy: Buy Natural Gas Nov Fut at 229 SL 224.8 Target 237/242
Copper
Trading Range: 850 to 865
Intraday Trading Strategy: Buy Copper Nov Fut at 856.50 SL 852.0 Target 863
Zinc
Trading Range: 277-289
Intraday Trading Strategy: Buy Zinc Nov Fut at 281.80 SL 279 Target 287
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