Gold: Outlook: Gold may take a shot at Rs 31,900

NEW DELHI: Bullion is expected to change sides today as global


prices steadied after the dollar lost steam.

A rally in riskier equities to multi-month highs limited the yellow metal’s safe-haven demand.

Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since March 8 at 768.10 tonnes on Tuesday, Reuters reported.

Crude oil edged up to $70 per barrel, its highest since November, on tighter supply.

Let’s have a quick check on how the commodity trade might pan out today, as projected by brokerage SMC Global Services.

Bullion: Bullion counter may trade sideways and can take support near Rs 31,550, facing resistance near Rs 31,900. Silver can witness lower level buying and test Rs 37,600, taking support at Rs 37,200.

Base metals: Base metals may trade in the green today, in light of gains in those counters at the London Metal Exchange (LME). Copper may hover near Rs 449, with comfort near Rs 441 in MCX. Zinc may test Rs 224, with a likely support near Rs 222. Lead can move in the range of Rs 136-139. Nickel may recover towards Rs 920, drawing support from near Rs 900. Aluminium prices may trade in the range of Rs 145-149.

Energy: Crude oil may see some upward movement, tracking positive global cues. The counter may recover towards Rs 4,350, taking support near Rs 4,260 on MCX. Natural gas may witness lower level buying and can test Rs 191, taking support near Rs 187.

Spices: Turmeric futures (April) are expected to face a hurdle near Rs 6,460 level. Jeera futures will possibly take support near Rs 15,570. Coriander futures are in the overbought zone. Still, it may maintain its upside bias and test Rs 6,955.

Oilseeds: A consolidation can be seen in soybean futures in the range of Rs 3,725-3,785 levels. Soy oil contracts are expected to trade sideways in the range of Rs 732-737 levels. CPO futures might rise to test the resistance near Rs 537. Mustard futures are expected to trade with an upside bias and test Rs 3,850, taking support at Rs 3,800.

Other commodities:

Cotton futures are likely to face headwinds near Rs 21,840 level while those of chana are expected to get extended towards Rs 4,550 level. Guar seed and Guar gum futures are looking bullish and can reach Rs 4,530 and Rs 9,200 levels, respectively.


Author: Prakash Poojary

Business Analyst

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