Commodity outlook: Buy copper on dips; gold support at Rs 30,000

Home Markets Commodity outlook: Buy copper on dips; gold support at Rs 30,000
Commodity outlook: Buy copper on dips; gold support at Rs 30,000

NEW DELHI: Gold prices came under pressure on Wednesday on the back of higher US bond yields and a stronger dollar, which also dented sentiment of other metals.

Base metals tumbled, with copper, zinc and lead sinking to lowest levels in about a year, as speculators unleashed selling on back of further escalation in the US-Chinese trade conflict.
In energy mart, crude oil plunged most in two years as imminent resumption of exports from Libyas eastern ports added downward pressure on oil prices, which overshadowed the biggest drop in crude inventories since 2016.

Here's a lowdown on how key commodities are likely to shape up in the evening trade, as provided by Motilal Oswal Financial Services.

MCX Gold: MCX Gold has immediate resistances at Rs.30280 – 30330 whereas supports are at Rs.30100 – 30000.

Gold (SPOT): Spot Gold has immediate resistance at $1248 and support at $1238. Either side sustained breach should be decisive going ahead.

MCX Silver: MCX silver is trading near key support zone Rs.39100 -39000. Sustained trade below the same will weaken the trend. Lower supports are at Rs.39000 – 38700. Higher resistance is at Rs.39500 – 39700.

Silver (SPOT): Spot Silver remains range bound within $15.70 – 16.10.

MCX Copper: Short term trend remains bearish in MCX Copper. Pullback is expected as long as price stays above Rs.418 – 415 levels. Immediate resistances are at Rs.428 – 430 levels. Dip buying is advised with tighter stop.

MCX Nickel: MCX Nickel has strong resistances at Rs.985 / 990 levels. Trend remains bullish as long as price stays above Rs.950. Immediate supports are at Rs.970 – 960 zone. Dip buying is advised.

MCX Crude Oil: Trend remains bearish in MCX Crude Oil. Intraday resistances are at Rs.4880 / 4920 whereas supports are at Rs.4835 / 4775. Selling on rise is advised.

MCX Natural Gas: Pullback is expected in MCX Natural gas as long as price stays above Rs.190. Resistances are at Rs.194.50 / 195.50. Buying is advised.

MCX Lead: MCX Lead remains bearish for short term and there are no positive signs yet. Rs.149.50 – 151 may act as a strong resistance whereas Rs.145 – 144 zone is immediate support.

MCX Zinc: MCX Zinc is weakest of the lot and there is no bullish signal visible yet. Immediate trading range is expected to be Rs.174 – 180.

MCX Aluminium: MCX Aluminium remains bearish below Rs.143.50. Immediate resistances are at Rs.141.50 – 142, whereas supports are at Rs.139.50 – 138.50.

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