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Commodity Outlook: Gold, oil likely to edge higher; here’s how other commodities may fare today

Metals and energy counters were trading mixed in early trade on Friday in the run up to a formal signing of the trade deal between the US and China.
China’s Commerce Ministry said on Thursday that Beijing and Washington are still in the process of completing necessary procedures while maintaining close communication to sign the deal.Bullion traded flat while nickel slid 0.27 per cent to Rs 1,031.70 on MCX. Copper was up 0.17 per cent and natural gas fell 0.92 per cent to Rs 161.20.Most agri-commodities were trading down on NCDEX. Coriander and turmeric futures were the only two counters that gained, all others were in the red.
Here is how SMC Global expects commodities to fare today:Bullion: Bullion counters may trade with an upside bias. Gold can jump towards Rs 39,150 while taking support near Rs 38,800 and silver can move towards Rs 47,300 while facing resistance Rs 46,500.Base metals: Base metals may trade sideways. Copper (Jan) may test Rs 444 while taking support near Rs 439. Zinc can recover towards Rs 182 while facing resistance near Rs 177. Lead may trade sideways with upside as it can test Rs 155 by taking support near Rs 151. On the other hand, Nickel may dip towards Rs 1,035 while taking resistance near Rs 1,045. Aluminum may move upside towards Rs 138 while taking support near Rs 134.50.

Crude oil may trade with an upside bias. Crude oil can move towards Rs 4,450 while taking support near Rs 4,370. Natural gas can bounce towards Rs 165 while taking support near Rs 159.Spices: Turmeric futures (Mar) may continue to face resistance near Rs 6,430, while the support level is near Rs 6,250-6,210. Jeera futures (Jan) are expected to trade sideways to up in the range of Rs 16,400-16,600. This year, cardamom futures on the national bourse made a high of Rs 3468.70 and are currently trading near this level. The possibilities that they will hit a new yearly high taking support near Rs 3,400-3,350 are very high.Oilseeds: Soybean futures (Jan) have surpassed the previous high of Rs 4,370 witnessed during April’16 owing to strong demand from crushing plants. Going ahead, this bullishness is to prevail till Rs 4,500-4,550, boosted by domestic demand from livestock businesses amid tight supply from producing belts. Mustard futures (Jan) are trading near its 3-year peak of Rs 4,606 and the bullish trend may lift the counter to Rs 4,700. Going ahead, soy oil futures (Jan) are seen heading towards Rs 945-955, while CPO futures (Jan) could test Rs 795-805 on the higher side.

Other commodities:
Cotton futures (Dec) are expected to trade sideways to down in the range of 19,000-19,250. Chana futures (Jan) may consolidate in the range of Rs 4,520-4,595. Mentha oil futures (Jan) are likely to face resistance near Rs 1,310 and witness profit booking towards Rs 1,285.

Source: Economic Times