futures are pointing to a downward journey today as the
firmed up globally.
What may limit the likely losses is the fall in equities that are worried about global growth and trade friction. The upcoming elections in India proved to be another source of anxiety.
According to Reuters, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell for the seventh consecutive session, dropping about 0.4 per cent to 757.85 tonnes on Tuesday.
Let’s take a look at how various commodities may fare today, as projected by brokerage SMC Global Securities.
Bullion: The bullion counter may witness some profit booking at higher levels. Gold can dip towards Rs 32,000 while facing resistance near Rs 32,300. Silver can test Rs 37,500 while facing resistance near Rs 38,000.
Base metals: Base metals may display some negative biases. Copper may test Rs 442 while facing resistance near Rs 455 on MCX. Zinc can test Rs 222 while facing resistance near Rs 227. Lead can move in the range of Rs 136-138. Nickel may dip towards Rs 910 while facing resistance near Rs 925. Aluminium prices may trade in the range of Rs 146-149.
Energy: Crude oil may trade with an upside bias. It may run up towards Rs 4,500 while taking support near Rs 4,420. Natural gas may witness lower level buying and can test Rs 192 with likely relief near Rs 185.
Spices: Turmeric futures (May) are expected to witness consolidation in the range of Rs 6,500-6,700. Jeera futures have breached the resistance near Rs 16,300 and may move ahead to Rs 16,500-16,550 levels. Coriander futures are likely to find support above Rs 7,080.
Oilseeds: Soybean contracts are expected to break the support near Rs 3,770 and plunge further to test Rs 3,750. CPO futures (April) are expected to take support near Rs 537. Mustard futures (May) are seen to take support near Rs 3,760.
Other commodities: Cotton futures (April) will possibly witness a correction towards Rs 22,000 level. Chana derivative contracts (May) may trade sideways in the range of Rs 4,225-4,265 levels.