Commodity prices traded mixed on Thursday after seeing a firm trading in the previous session. Bullion prices held support levels with gold prices ending flat. Here is a look at how different commodities are behaving in today’s market.
Outlook: Bullion
Bullion prices traded weak with spot gold price at COMEX was trading below $1,800 per ounce while spot silver price at COMEX was trading firm at $27.99 per ounce in the morning trade. Bullion prices traded under pressure with rise in US bond yields despite of weaker dollar on strong equity indices. The strong equity indices on economic growth optimism pushed bullion prices down for the day. We expect bullion prices to trade sideways to down for the day.
Trading Strategy:
MCX Gold April resistance for the day lies at Rs. 46,100 per 10 grams with support at Rs. 46,600 per 10 grams.
MCX Silver March support lies at Rs. 68,500 per KG, resistance at Rs. 71,500 per KG.
Outlook: Crude Oil
Crude oil traded off the 13 months highs with benchmark NYMEX WTI crude oil prices were trading near $63 per barrel on Thursday. Crude oil prices rallied in previous session despite of bearish weekly inventory data. The lower supply concerns with impacted oil output due to cold storm in Texas boosted buying oil. Crude oil prices are expected to trade sideways to up for the day.
Trading Strategy:
MCX Crude Oil March support lies at Rs. 4,520 per barrel with resistance at Rs. 4,650 per barrel.
Outlook: Base Metals
Base metals complex traded higher on Thursday as industrial metals continued the buying spree on strong demand outlook. Copper prices rallied to 10 year highs on supply deficit and china demand. Aluminium and Lead prices gained by more than 1% on supply concerns from China. The Aluminium production can be halted in Inner Mongolia due to failure to meet energy consumption targets. We expect base metals to trade higher for the day.
Trading Strategy:
MCX Copper March support lies at Rs. 727 and resistance at Rs.736.
MCX Zinc March support lies at Rs. 225, resistance at Rs. 232.
MCX Nickel February support lies at Rs. 1,390 with resistance at Rs. 1,460.
(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities)
