Commodity outlook: How oil, gold, base metals and agri commodities may trade in Friday's session
Crude oil prices picked up as US oil producers in Gulf of Mexico cut output by more than half.
In the international markets, gold prices rose and were on track for a weekly gain, as worries over renewed US-China trade tensions and expectations of a rate cut by the Federal Reserve boosted demand for the safe-haven metal, Reuters reported.
On the other hand, crude oil prices picked up as the US oil producers in the Gulf of Mexico cut output by more than half, in the face of a tropical storm and as tensions in the Middle East remained.
How will commodities fare in the domestic futures trade today? Here is a quick check on projections of various commodities by brokerage SMC Global Securities.
Bullion: "Bullion counter may trade on a sideways path as some profit booking can be seen at higher levels," said the brokerage. MCX Gold can test Rs 34,650, facing resistance near Rs 35,000 and silver can move towards Rs 38,000, facing resistance near Rs 38,500.
Base metals: Base metals may trade on a sideways path. Copper may witness an upside movement and can test Rs 445, taking support near Rs 440, while zinc can test Rs 194, taking support near Rs 190. Lead may test Rs 158, taking support near Rs 154. Nickel may test Rs 920, taking support near Rs 900 and aluminium may test Rs 144, taking support near Rs 139.
Energy: Crude oil may trade on an upside path, tracking the rise in global crude oil prices. MCX Crude oil may move towards Rs 4,200, taking support near Rs 4,120. Natural gas may remain on a stronger path and can test Rs 169, taking support near Rs 163.
Spices: Turmeric futures (Aug) may face resistance near Rs 6,800 and the upside may remain capped. "A bullish trend can be seen in jeera futures (Aug), hence lower level buying is recommended near Rs 17,300, eyeing Rs 17,600-17,700 levels, taking support near Rs 17,400-17,380 levels," said the brokerage. The rally in cardamom futures (Aug) is likely to continue towards Rs 2,860 level. Coriander futures (Aug) is likely to trade sideways in the range of Rs 7,090-7,200 levels, taking positive cues from higher export demand and low crop in the key growing areas of Rajasthan and Gujarat.
Oilseeds: August contract of soybean futures may face resistance near Rs 3,600-3,625 levels. Mustard futures (Aug) may see weakness and trade sideways in the range of Rs 3,910-3,930. CPO futures (July) is expected to face resistance near Rs 500, while soy oil futures (Aug) may remain below Rs 730.
Other commodities: Cotton futures (July) may trade sideways in the range of Rs 21,200-21,380 levels. Castor seed futures (Aug) is expected to consolidate in the range of Rs 5,620-5,675 and the downside may remain capped. Guar seed futures (Aug) is expected to trade sideways to upward in the range of Rs 4,390-4,440 levels on account of monsoon slowing down.