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Commodity methods: Gold, silver, crude, base metals

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By Tapan Patel

Commodity costs traded combined on Wednesday as bullion and crude oil costs traded larger whereas base metals traded in a slim vary. The greenback index continued draw back transfer, dropping 0.35 per cent for the day. Global traders’ pursuits have been muted in the direction of commodities on year-end squaring off. Here is a take a look at how totally different commodities are behaving in at present’s market.

Outlook: Bullion

Bullion costs traded regular on Thursday with spot gold costs at COMEX have been buying and selling close to $1,889 per ounce whereas spot silver costs at COMEX have been buying and selling over 1 per cent all the way down to $26.36 per ounce within the morning commerce. Bullion costs traded vary sure in the course of the week on lack of vital financial information and combined international cues. The worries over financial restoration on pandemic fears has supported bullion costs to commerce agency, limiting the draw back. We anticipate bullion costs to commerce sideways to up for the day on weaker greenback.

Trading Strategy:

MCX Gold February resistance for the day lies at Rs. 50,400 per 10 grams with help at Rs. 49,800 per 10 grams.

MCX Silver March help lies at Rs. 67,500 per KG, resistance at Rs. 69,800 per KG.

Outlook: Crude Oil

Crude oil costs traded marginally down with benchmark NYMEX WTI crude oil costs was buying and selling at $48.31 per barrel within the morning commerce. Crude oil costs traded beneath stress as pandemic worries overshadowed bullish stock information and vaccine hopes. The spreading of latest pressure of coronavirus has raised worries over gas demand restoration. Crude oil costs are anticipated to commerce sideways to up for the day.

Trading Strategy:

MCX Crude Oil January help lies at Rs. 3,470 per barrel with resistance at Rs. 3,590 per barrel.

Outlook: Base metals

Base metals costs traded weak on Thursday with many of the metals traded beneath stress as traders squared off their positions forward of 12 months finish. The worries over lockdown measures amid pandemic fears has pressured base metals costs. Base metals are anticipated to commerce sideways to down for the day over correction in Chinese Iron Ore costs.

Trading Strategy:

MCX Copper January help lies at Rs. 592 and resistance at Rs. 601.

MCX Zinc January help lies at Rs. 212, resistance at Rs. 217.

MCX Nickel January help lies at Rs. 1,210 with resistance at Rs. 1,250.

(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities)


By Ravindra Rao

MCX Gold February as soon as once more witnessed a rebound from the help stage close to Rs 49,800. Gold has been buying and selling within the consolidation zone of Rs 49,800-50,690 for fairly a while now. The decrease band of the vary is supported by 21 day EMA and the upside is resisted by 78.6 per cent Fibonacci extension. Meanwhile the momentum oscillator RSI has sustained above 50, supporting the value rise. Moreover the constructive crossover of 5 and 21 day EMA additionally strengthened the constructive transfer. As lengthy as Rs 49,800 holds, the value is anticipated to rise in the direction of Rs 50,690.

Strategy:

Buy MCX Gold Feb at Rs 50,050 with a goal of Rs 50,660 and a cease loss at Rs 49,750.

MCX Silver March future remains to be transferring contained in the upward sloping channel with decrease band help close to Rs 67,500-67,200. Price additionally bought help from 5 day EMA (68,120), adopted by earlier breakout turned help zone close to Rs 66,600. Moreover the bullish crossover of 5 and 21 day EMA together with robust RSI (64.5) has strengthened the bull case. However value must maintain above the important thing resistance of Rs 69,500 to increase its achieve in the direction of Rs 70,200.

Strategy:

Buy MCX Silver Mar at Rs 68,100 with a goal of Rs 69,500/70,200 and a cease loss at Rs 67,000.

(Ravindra Rao is VP-Head Commodity Research at Kotak Securities)




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