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Commodity outlook: More upside for bullion; base metals may trade sideways

Copper may test Rs 422 while facing resistance near Rs 435 in MCX.|
Jan 28, 2019, 01.21 PM IST
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Base metal prices may trade with sideways to a negative path.

Commodity Summary

NEW DELHI: Gold and silver were dazzling in the futures trade on Monday on stronger demand at the spot market and supportive global trend.

Hopes that the US Fed may keep rates unchanged during its two-day policy meeting later in the week, helped gold stay steady in global markets.

Oil, however, fell in the domestic futures trade, tracking weakness in global crude oil prices.

Oil prices fell by 1 per cent on Monday after the US companies added rigs for the first time this year, a signal that crude output may rise further, and China, the world's second-largest oil user, reported additional signs of an economic slowdown, Reuters reported.

The MCX Gold was trading at Rs 32,499 per 10 grams, up by Rs 156, while MCX Silver was trading at Rs 39,973 a kilo, up by Rs 303 around 11:55 am. The MCX Crude oil was trading at Rs 3,788 per barrel, down Rs 24 at that time.

We bring you outlook on commodities by various brokerages. Take a look:

Outlook on bullion by Motilal Oswal Securities

Gold: MCX Gold may trade with positive bias. MCX Gold can move towards higher resistance at Rs 32,550-32,700. It has got immediate support at Rs 32,250.

Silver: MCX Silver looks supported above Rs 39,150, with immediate support at Rs 39,600. Buying on dips is advised, targetting higher resistance at Rs 40,300-40,500.

Outlook on base metals, energy and agri-commodities by SMC Global Securities

Base metals: Base metal prices may trade with sideways to a negative path. Copper may test Rs 422 while facing resistance near Rs 435 in MCX. Zinc can move sideways to a negative path as it can test Rs 187. Lead can take support near Rs 146 and can face resistance near Rs 151. Nickel can move in the range of Rs 830-850. Aluminium prices can move lower and can test Rs 132.

Energy: Crude oil may trade in the red as oil prices fell on Monday after the US energy firms added rigs for the first time this year in a sign that crude production there will rise further. Crude oil can test Rs 3,750 levels while facing resistance near Rs 3,845. Natural gas may tumble further lower and it can move in the range of Rs 200-225.

Spices: Turmeric futures (April) is on the verge of breaking the major support near Rs 6,400 and may witness more correction near Rs 6,315-6,200 levels. An extended bearish trend can be seen in jeera futures (March) as it can test Rs 16,000 if breaks Rs 16,270 levels. Coriander futures (February) is expected to trade with negative bias in the range of Rs 6,540-6,690 levels. The bullish trend in cardamom futures (February) is likely to persist taking support near Rs 1,590 level.

The bullish trend of soybean futures (February) is likely to get dimmed as it might witness profit facing resistance near Rs 3,900 level. Mustard futures (February) may face resistance near Rs 4,020 level. CPO futures (February) is likely to face resistance near Rs 570-572 levels and may trade with a negative bias owing to profit booking.

Other commodities: Cotton futures (January) is likely to test Rs 20,500-20,400 levels on the downside due to lack of demand. Guar seed futures (February) will probably remain steady taking support near Rs 4,240 level, while guar gum futures (February) may remain stable above Rs 8,500 level. Chana futures (March) is expected to plunge further towards Rs 4,150 level taking negative cues from the spot markets.

Also Read

Base metals: Aluminium, lead, nickel gain on pickup in demand

Commodity outlook: Base metals flat; here's how others will trade today

Base metals: Copper, nickel, zinc futures up on spot demand

Base Metals: Aluminium, nickel, copper futures fall on subdued demand

Base Metals: Zinc, nickel, aluminium futures gain on spot demand

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