Commodity costs witnessed combined buying and selling on Thursday as fairness indices pared some losses on US stimulus talks. Commodity costs fluctuated on greenback restoration amid rising worries over surge in virus circumstances in Europe and weak financial knowledge. Here is a have a look at how totally different commodities are behaving in in the present day’s market.
Bullion costs have been agency on Friday with COMEX spot gold costs buying and selling above $1900 per ounce whereas spot silver costs traded close to $24.23 within the morning commerce. Bullion costs prolonged features regardless of restoration in US greenback on fears of recent lockdown measures in Europe and UK. The rise in US Jobless Claims and decline in manufacturing actions boosted shopping for in treasured metals on financial progress worries. Bullion costs are anticipated to commerce in present vary for the day with markets awaiting progress over US stimulus talks.
Buy on dips round Rs 50,580 is advisable for the day
MCX Gold December
- RESISTANCE at Rs 50,900 per 10 grams
- SUPPORT at Rs 50300 per 10 grams
MCX Silver December
- SUPPORT at Rs 59,000 per kg
- RESISTANCE at Rs 62,500 per kg
Outlook: Crude Oil
Crude oil costs traded weak on Friday. WTI crude oil costs fell by 1% to $40.55 in morning commerce. Crude costs got here beneath stress after rising within the earlier session on bullish weekly stock knowledge. Crude oil costs are anticipated to commerce with a bearish bias amid weak demand and oversupply situation as OPEC+ nations counsel easing output cuts quota by 2 mb per day from January 2021. The demand progress is a continuing concern for oil worth restoration amid resurgent fears of Covid infections in Europe and US.
Sell on rise round Rs 2,990
MCX Crude Oil October
- SUPPORT at Rs 2,920 per barrel
- RESISTANCE at Rs 3,040 per barrel
Outlook: Base Metals
Base metals advanced continued to commerce combined with lead costs declining probably the most whereas copper and zinc costs witnessed a rally. Copper costs saved buying and selling steadily as high miners have been in dialogue to keep away from a strike at Chile. The mediated talks prolonged until Friday whereas operations have been affected with round 350 employees strolling out from Lundin Mining Corp.’s Candelaria operations. Zinc costs rose on provide tightness.
Copper costs to commerce sideways
MCX Copper October
- SUPPORT at Rs 524
- RESISTANCE at Rs 532
MCX Nickel October costs could commerce larger for the day
SUPPORT at Rs 1120 and
RESISTANCE at Rs 1145
MCX Zinc October costs could preserve sideways to up
SUPPORT at Rs 191
RESISTANCE at Rs 196
(Tapan Patel is Senior Analyst (Commodities) at HDFC Securities. Views are his personal)