Outlook: Bullion
Bullion prices traded steady on Thursday with spot gold prices at COMEX near $1,790 per ounce while spot silver prices at COMEX were down 0.35% near $22.98 per ounce. Bullion prices held firm trading range supported by a weaker dollar and inflation worries. The US CPI rose by 5.4% in September, boosting buying in precious metals. However, the upside were capped on Thursday after US FOMC minutes showed that Fed may start asset tapering by mid-November. Bullion prices may trade sideways to up for the day.
Trading Strategy:
Gold December resistance for the day lies at Rs 48,200 per 10 gram with support at Rs 47,500 per 10 gram. MCX Silver December support lies at Rs 61,200 per kg, resistance at Rs 63,800 per kg.
Outlook: Crude Oil
Crude oil prices traded higher on Thursday with benchmark NYMEX WTI crude oil prices up by 0.73% to $81.03 per barrel. Crude oil prices pared previous loses on larger than expected inventory draw. The US API said on Wednesday US crude stockpiles rose by 5.2 million barrels for the week ended Oct. 8. The US EIA said on Wednesday that crude oil output in the United States, the world’s biggest producer, is going to decline in 2021 more than previously forecast. We expect crude oil prices to trade sideways to up for the day.
Trading Strategy: MCX Crude Oil October support lies at Rs 6,020 per barrel with resistance at Rs 6,180 per barrel.
Outlook: Base Metals
Base metals prices traded higher on Thursday. Most of the metals extended gains on lower supply concerns. Zinc prices rallied by more than 5% in opening trade on lower output from European giant Nyrstar. Power shortage across the globe has led to production cuts raising supply concerns. Aluminum prices rose to 13-year high on higher demand and rise in Chinese exports. Base metals may trade sideways to up for the day.
Trading Strategy: MCX Copper October support lies at Rs 762 and resistance at Rs 776. MCX Zinc October support lies at Rs 287, resistance at Rs 305. MCX Aluminium September support lies at Rs 242 with resistance at Rs 254.
(Tapan Patel is Senior Analyst, Commodities, HDFC Securities. Views are his own)
