Thursday 18 July 2019

Commodity Outlook: How gold, oil, base metals and agri-commodities may fare today

Gold traded in a narrow range in futures trade on Thursday due to muted demand from jewellers at spot markets. 



Global cues, too, were uninspiring. The yellow metal pulled back from a two-week high to trade lower in global markets as some investors took advantage of the last session's gain to book profits. 

Crude oil also traded lower in futures trade, tracking a weak global trend. 

Around 10:30 am, MCX Gold traded at Rs 35,095 per 10 grams, up by Rs 5, while MCX Crude oil traded Rs 3,904 per barrel, down by Rs 12. 

Bullion: Gold can test Rs 35,200, taking support near Rs 34,800 and silver can move towards Rs 41,000, taking support near Rs 40,000. 

Base metals: Base metals may trade with a positive bias. Copper may move higher towards Rs 450, taking support near Rs 442, while lead may test Rs 158, taking support near Rs 155. Nickel may move higher towards Rs 1,050, taking support near Rs 1,000. Aluminium may test Rs 145, taking support near Rs 142. 

Spices: Turmeric futures (Aug) is looking bullish and can test Rs 7,300. Jeera futures (Aug) may rise towards Rs 18,500-18,600, as soon as it breaches the resistance near Rs 18,400. Cardamom futures (Aug) may head towards Rs 3,250-3,280 on the back of failed crops, deficit monsoon and poor inventories. Coriander futures (Aug) may see lower-level buying near Rs 7,135 and later gain towards Rs 7,300-7,400. 

Other commodities: Cotton futures (July) may test Rs 22,000 level. This boost in prices is mainly due to the continuing contraction in international and domestic cotton prices following higher global production and a decline in domestic output, which is likely to boost imports further this year. Maize futures (Aug) is likely to take support near Rs 2,140 level. Castor seed futures (Aug) may take support near its previous two week low of Rs 5,545 and any sharp downside may remain .. 

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