Commodity Outlook: Gold may find it hard to top Rs 32,200 on MCX

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Gold and silver prices faltered on Friday morning. Base metals moved with mixed fortunes, in line with global cues.

Belying expectations, China’s September exports rose a solid 14.5 per cent from a year earlier, in the face of US tariffs.

US President Donald Trump warned on Thursday that there was much more he could do that would hurt China’s economy further, showing no signs of backing off in an escalating trade fight with Beijing.

How should be your commodity play today? We bring you a guidance on agri, base metals, crude oil and natural gas by SMC Global Securities.

Bullion: Gold has its support coming up near Rs 31,800, with a likely barrier near Rs 32,200 on MCX. For silver, the respective figures are Rs 38,600 and Rs 39,400.

Base metals: Copper’s upside may be capped near Rs 468, but the metal can take comfort from Rs 457. Similarly, the corresponding figures are Rs 199 and Rs 193 for zinc, Rs 151 and Rs 145 for lead, Rs 950 and Rs 926 for nickel and Rs 154 and Rs 148 for aluminium.

Energy: Crude oil can rest easy on Rs 5,220, but Rs 5,320 is tough to breach on MCX. Natural gas may show sideway movement as it can move in the range of Rs 235-244 on MCX.

Spices: Turmeric futures (November) are expected to consolidate in the range of Rs 6,575-6,700 levels. Jeera futures (November) are likely to stick to Rs 19,200-19,600. Cardamom futures (November) may display a positive bias and take strength from the Rs 1,320 level.

Oilseeds: Soybean futures (November) are expected to stay comfortable near Rs 3,190 and any short covering may be limited. The arrivals are in full swing, with a total of 5,65,000 bags of soybean in the pipeline.

Mandi rates in Madhya Pradesh went in the range of Rs 2,900-3,100 while in Rajasthan and Maharashtra, the prices were at Rs 2,800-3,000 per quintal. Plant delivery in Madhya Pradesh, Maharashtra and Rajasthan quoted at Rs 3,125-3,200, Rs 3,100-3,250 and Rs 3,100-3,125 per quintal, respectively. Mustard futures (November) will possibly move both ways in the range of Rs 4,130-4,165 levels.

Other commodities:
Cotton futures (October) are expected to see a range bound trade in Rs 22,280-22,400. Guar seed futures (November) will probably break the support near Rs 4,235 and plunge to test Rs 4,200 levels. Chana futures (November) are expected to stay on a positive note and test resistance near Rs 4,225.

Source: Economic Times