Commodities outlook: Gold may have some cushion at Rs 31,750

image

Gold and silver ruled flat today in the wake of lacklustre demand from jewellers, industries, retailers and investors.

MCX Silver futures edged down by 0.01 per cent to Rs 38,800 per kg while gold futures slipped 0.11 per cent to Rs 31,868 per 10 grams.

How are commodities looking like today? Here’s the outlook by SMC Global Securities.

Gold and silver
The bullion counter may see a sideway movement on mixed fundamentals. Gold can take support near Rs 31,750 and face resistance near Rs 32,000 on MCX. Silver can take support near Rs 38,650-38,850.

Base metals
Base metal prices can run with a positive bias. Copper’s resistance may come up near Rs 458, with a likely support near Rs 450. Zinc’s equivalent figures are Rs 198 and Rs 193. Zinc spreads are tightening as more metal arrives in warehouses in China. Lead is eyeing support near Rs 144 and may face a hurdle near Rs 150. Nickel can take support near Rs 905 while its upside will be capped near Rs 925. Aluminium can take support near Rs 145 levels while it has resistance near Rs 149 levels.

Energy
Crude oil can draw its support from Rs 5,080, but may run into a bump near Rs 5,160 on MCX. Natural gas may trade with a sideways bias as it can move in the range of Rs 236-242 on MCX.

Spices
Further bearishness can be seen in turmeric futures (November) as it can face resistance near Rs 6,600-6,625. Trading activities are sluggish in major turmeric markets amid lacklustre buying and arrival of low quality spice. Spot prices of turmeric are going down in Erode as only medium and poor quality produce arrived for sale.

Jeera futures (November) are expected to trade with an upside bias and test Rs 20,500. With the hope of increase in the consumption during the coming festival month, the traders are not hesitant to stock jeera even at a higher price. Cardamom futures (November) will possibly remain trapped in the range of Rs 1,400-1,455 with downside getting capped.

Oilseeds
Soybean futures (November) are seen to move sideways in the range of Rs 3,230-3,260. Mustard futures (November) are likely to face resistance near Rs 4,200 levels. A lower level buying can be seen near Rs 585 levels in CPO futures (October) as it has the potential to test Rs 597.

Other commodities
The correction in the mid-way of rally in cotton futures (November) is expected to witness a halt and take support near Rs 22,380. In guar seed futures (November), there is more room for upside as it can test Rs 4,685 levels. The stockists are active and buying guar seed in good quantity with expectations of better return amid lower crop estimates. This season, guar seed stocks are expected to decline to multi-year low this season due to fall in production back-to-back this year amid adverse weather conditions. Chana futures (November) will probably face resistance near Rs 4,150 levels.

Source: Economic Times