Commodity prices remained stable on Thursday after a mixed trade in the previous session. On Wednesday, bullion prices saw a correction in the evening session, surpassing the day’s losses. fed Base metals traded under pressure on a firming dollar and concerns over Chinese demand. crude oil On a strong demand outlook, prices rose for the day and OPEC Expectations of recovery in demand in the second half of the year. Here’s a look at how different items are behaving in today’s market.
Stability in bullion prices on Thursday with spot Gold COMEX price was trading near $1905 per ounce while spot silver COMEX price was trading flat at $28.11 an ounce in morning trade. The precious metals were kept in a strong trading range as gold prices rose above a five-month high of $1,900 on Fed’s official comments. US Fed Officials said that when the economy has made substantial progress, then gradually reduce bond-buying. Traders and investors will look forward to today’s US ADP payroll data in the evening session. We expect the bullion price to trade sideways for the day.
MCX Gold August resistance for the day is at Rs. 49,800 per 10 grams with support of Rs. 49,200 per 10 grams.
MCX Silver July Support Rs. 71,200 per kg, resistance at Rs. 74,000 per kg.
Outlook: Crude Oil
Crude oil prices rose 0.70 per cent to $69.31 a barrel in morning trade with benchmark NYMEX WTI trading higher. Crude oil prices are trading above the short term resistance of $68 on a firming demand outlook. Crude oil prices rose on hopes of improving fuel demand from the US, China and Europe after OPEC forecast higher demand in the second half of the year. OPEC+ data shows that by the end of the year oil demand will be 99.8 MB per day while the supply will be 97.5 MB per day. We expect crude oil prices to trade sideways for the day tracking official US weekly inventory data later today.
MCX Crude Oil June support is at Rs. With resistance at Rs 4,980 per barrel. 5,120 per barrel.
Outlook: Base Metals
Base metals traded firm on Thursday. Base metals traded under pressure from a firming dollar and demand concerns from China. Positive global cues followed by strong US data limited the decline in base metals. Copper prices are supported by supply concerns as miner BHP faces a labor strike at its Escondida and Spence mines in Chile, while a landslide at the US Bingham Canyon copper mine in Rio Tinto disrupted operations. has gone. Base metals are expected to trade with gains during the day.
MCX Copper June support is at Rs. 754 and resistance at Rs. 772.
MCX Zinc June support is at Rs. Resistance at Rs 239. 245.
MCX Nickel June support is at Rs. 1310 with resistance at Rs. 1370.
(Tapan Patel is Senior Analyst (Commodity) at HDFC Securities)
by Ravindra Rao
gold on mcx August futures have tested a key resistance area of the rupee. 49,700-49,750. Now it will be important for the bulls to take it beyond Rs. On closing basis for next target near Rs 49750. 50,050. Till then, the price may consolidate in the band of Rs. 49,150-49,750. While Rs. Holds key support below Rs 48,700. 49,150. The RSI is still supporting the bullish momentum. Based on the current price action, the market is expected to move sideways against the rupee. 49,150-49,750. Only one step above Rs. 49,750 will push the price up to Rs. 50,050. On the flipside, under Rs. 49150, the fall may extend towards Rs. 48700.
Buy MCX Gold Aug at Rs. 49,350 with a target of Rs. 49,700 and the stop loss is Rs. 49.100
MCX Silver July futures saw a good rebound from the midline of Bollinger Bands and ended with gains yesterday. The price trend appears to be sideways as it has failed to break the consolidation range of Rs. 73,600-70,500 on several occasions. However, a rising trend channel is well placed with support from the 21-day EMA. 71,550. Now Rs. 70,500 appears to be a major support area as it has reversed from that level on a few occasions, forming a strong base (double bottom). On the upside, major resistance is present near the Rs. 73,600, after that Rs. 74,100. The momentum indicator (RSI) is hovering above 60, which indicates a higher trend. From above, we expect silver to trade in the range of Rs. 71,550-73,600 with a sideways bias. Only one stop above Rs. 73,600 will push the price up to Rs. 74,100.
The trading range for MCX Silver is between Rs. 71,550-73,600.
(Ravindra Rao, CMT, EPAT is VP-Head Commodity Research at Kotak Securities)
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