Commodity methods: Gold, silver, crude, base metals

Commodity costs traded blended on Wednesday as bullion costs pared this week’s good points whereas crude oil and base metals traded increased on optimistic world cues. The greenback index ended marginal increased on Wednesday witnessing restoration. Here is a take a look at how completely different commodities are behaving in at present’s market.

Outlook: Bullion

Bullion costs traded regular with spot gold costs at COMEX was buying and selling close to $1,917 per ounce whereas spot silver costs at COMEX was buying and selling close to $27.05 per ounce. Bullion costs traded below stress after falling by almost 2 per cent on Wednesday with rise on US treasury yields. The democrats are set to take management of the US senate which triggered revenue reserving in bullion with rising bond yields. We count on bullion costs to commerce sideways to down for the day.

Trading Strategy:

MCX Gold February resistance for the day lies at Rs. 51,100 per 10 grams with assist at Rs. 50,400 per 10 grams.

MCX Silver March assist lies at Rs. 68,500 per KG, resistance at Rs. 70,800 per KG.

Outlook: Crude oil

Crude oil costs traded increased for the third consecutive day with benchmark NYMEX WTI crude oil costs traded above $51 per barrel within the morning commerce. Crude oil costs gained with rally in equities, bullish stock knowledge and expectations of tighter provide. The Saudi Arabia shocked the market with its pledge to chop 1 mb per day of output in February and March. Crude oil costs are anticipated to commerce sideways to up for the day on optimistic world cues.

Trading Strategy:

MCX Crude Oil January assist lies at Rs. 3,670 per barrel with resistance at Rs. 3,780 per barrel.

Outlook: Base Metals

Base metals traded increased on Thursday as nickel costs rallied essentially the most with 1.55% good points within the morning commerce. Copper costs hit the 7 years highs whereas LME Nickel crossed $18,000 per ton on increased demand prospects. Base metals witnessed sturdy shopping for this week supported by greenback decline and optimistic financial knowledge. Copper costs acquired further assist from provide disruption fears from Peru over protest. Base metals are anticipated to commerce sideways to up for the day.

Trading Strategy:

MCX Copper January assist lies at Rs. 615 and resistance at Rs. 625.

MCX Zinc January assist lies at Rs. 223, resistance at Rs. 228.

MCX Nickel January assist lies at Rs. 1,290 with resistance at Rs. 1,360.

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

By Ravindra Rao


MCX Gold February witnessed sharp decline because it failed to maneuver past the upper band of the upward rising channel resistance close to Rs 51,850. Meanwhile worth is buying and selling near the decrease band of the channel and close to the 21 day EMA assist at Rs 50,232, which may restrict additional draw back in gold costs. On the momentum entrance RSI is hovering close to 53 suggesting sideways bias. However failure to carry above 50 would weaken the power within the worth development. For the day, worth anticipated to maneuver within the band of Rs 50,200-51,100 with a sideways bias. Although the bottom development is optimistic an in depth beneath Rs 49,800 would change the bias to impartial.

Strategy:

Buy MCX Gold Feb at Rs 50,300 with a goal of Rs 51,100 and a cease loss at Rs 49,800.

MCX Silver March future additionally adopted the trail of gold and witnessed a steep decline as worth did not transcend its earlier high at Rs 71,650 registering a similar high. Meanwhile worth is buying and selling beneath the 5 day EMA (69,450) and near the channel assist of Rs 68,400. Failure to carry the assist at Rs 68,400 would weaken additional in direction of the 21 day EMA assist at Rs 67,350. However RSI on the day by day charts is hovering close to 60 suggesting firmness in development. For the day worth is predicted to maneuver within the band of Rs 68,400-71,600 with a sideways bias. Only a transfer on both aspect of the vary would resolve additional path in costs.

Strategy:

Buy MCX Silver Mar at Rs 68,600 with a goal of Rs 70,950 and a cease loss at Rs 67,200.

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