Commodity outlook: Gold, oil prices in for some consolidation
Aluminium prices may recover towards Rs 152 while taking support near Rs 150.
Commodity Summary MCX
As per Reuters, gold prices fell to hover around its four-month low touched in the previous session, as share markets rose and the dollar gained after strong US housing data dampened concerns about an economic slowdown in the country.
Oil prices may also see some pressure as the commodity declined amid signs that global markets remain adequately supplied.
Let's take a look at how various commodities may fare today, as projected by brokerage SMC Global Securities.
Bullion: Bullion counter may trade flat with a negative bias, tracking global cues. It may test Rs 31,400 while facing resistance near Rs 31,700. Silver can test Rs 36,750 while facing resistance near Rs 37,250.
Base metals: Base metals prices may trade sideways with a positive bias. Copper may test Rs 450 while facing support near Rs 442 on MCX. Zinc can test Rs 226 while taking support near Rs 221. Lead can move in the range of Rs 132-135. Nickel may remain subdued and it can test Rs 855 while facing resistance near Rs 875. Aluminium prices may recover towards Rs 152 while taking support near Rs 150.
Energy: Crude oil may witness some profit booking at higher levels. It may dip towards Rs 4,580 while facing resistance near Rs 4,660 on MCX. Natural gas may trade in the range of Rs 171- 175 on MCX.
Spices: Turmeric futures (May) may consolidate in a broader range of Rs 6,250-6,450. Jeera futures (May) may see some buying and in days to come, it may test Rs 17,200-17,300 levels. Coriander futures (May) is trapped in the range of Rs 7,050-7,250 for past two weeks. Cardamom futures (May) is expected to take support near Rs 1,625.
Oilseeds: Soybean futures (May) is giving a lower closing for the last two weeks. The short covering may face resistance near Rs 3,750. Mustard futures (May) is likely to face resistance near Rs 3,810 and the upside may remain capped. Soy oil futures (May) is likely to trade sideways in the range of Rs 735-740. CPO futures (May) will remain trapped in the range of Rs 541-546.
Other commodities: Cotton futures (April) are expected to witness further correction towards Rs 21,800 level. Chana futures (May) may face resistance near Rs 4,445 level and may trade with a downside bias on reports of further imports. India will import 1.75 lakh tonnes of tur, other pulses from Mozambique in 2019-20 as the Directorate General of Foreign Trade (DGFT) on Tuesday issued a trade notice regarding the implementation of the India-Mozambique MoU. More downside is possible in guar seed and guar gum futures (May) and they may test Rs 4,290-4,250 and Rs 8,600-8,550, respectively.