Commodity outlook: How gold, silver, nickel, crude oil

December 6, 2019

New York (Dec 6)  Gold traded flat in the yesterday’s session, amidst mixed messages on the ongoing trade talks between US and China. Market participants did not react after US President Trump mentioned that the trade talks are moving right along and on other hand China remained fixed on their stance reiterating that roll back of tariffs should be a part of ‘phase one’ deal

Base metals traded sideways couple of days of high volatility on conflicting statements from the US over trade issues with China. Copper is trading firm today all set for a third straight weekly gain, following US President Trump's upbeat rhetoric on trade talks with China, although concerns about demand for the metal kept gains in check

Crude oil saw a choppy session after rallying a bit but markets await for a green light for an extended 5,00,000 bpd cut which would be an addition to 1.2 Mbpd cut decided earlier and agreement to be extended till March 2020.

Motilal Oswal Commodities Research lists how different commodities may trade in the second half of the session today:

MCX Gold

MCX Gold has support at Rs.37940 – 37750 whereas resistance is at Rs.38130 – 38290. Sideways movement is expected for the day. Price sustainability above immediate resistance level of Rs.38130 will give further momentum towards Rs.38290 level.

Gold $ (SPOT)

Spot Gold has key support at $1460 whereas resistance remains at $1490. Sideways movement is expected for the day.

MCX Silver

MCX Silver has support at Rs.44270 - 44070 whereas resistance is at Rs.44700 - 44900. Sideways to negative movement is expected for the day. Selling on rise is advised for the day targeting support level of Rs.44270 - 44070.

Silver $ (SPOT)

Spot Silver has resistance at $17.10 whereas support is at $16.70. Sideways movement is expected for the day.

MCX Copper

MCX Copper is expected to trade range bound with resistance at Rs.434.20 – 435.20 and support at Rs.431.60 – 429. Price sustainability above Rs.434.20 will give further momentum towards 435.20 level.

MCX Nickel

MCX Nickel is expected to trade sideways with resistance at Rs.1005 – 1016 and support at Rs.986 – 973 level. Price sustainability below Rs.986 will give further momentum towards 973 level.

MCX Crude Oil

MCX Crude Oil has immediate support at Rs.4120 - 4090 whereas resistance is at Rs.4200 - 4225. Sideways to positive momentum is expected for the day and dip buying is recommended targeting resistance level of Rs.4200 – 4225.


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