Commodity outlook: Downside likely for copper; aluminium seen in tight range

NEW DELHI: Gold came under pressure during the intraday trade on Wednesday following stronger dollar that rose to the highest level in six months after a hawkish statement by the Fed Chairman and better-than-expected industrial production number.

Copper edged lower along with aluminium and nickel, while crude prices were under pressure after a surprise build in US crude inventories.

Here's a lowdown on how key commodities are likely to shape up in the evening trade, as provided by Motilal Oswal Financial Services -


Gold: MCX Gold remains bearish as long as price stays below Rs 29,800. Intraday support is at Rs 29,630 whereas immediate resistance is at Rs 29,730. Selling below support is advised. Lower supports are at Rs 29,500 - Rs 29,420.

Silver: MCX silver remains bearish below Rs 38,750. It has immediate resistances at Rs 38,320 - Rs 38,420, whereas supports are at Rs 38,000 - Rs 37,800. Selling on rise is advised.

Copper: Trend remains bearish in MCX Copper as long as Rs 419 is capped as resistance. Intraday expected trading range is Rs 414.50 - 419. Lower support is at Rs 412 - 410 zone.

Lead: MCX Lead is expected to trade sideways to lower as long as Rs 150 is capped as resistance. Selling on rise is advised targeting lower supports at Rs. 146 - 145.

Zinc: Broader trend remains bearish in MCX Zinc below Rs 181, however possibility of intraday pullback cannot be ruled out as long as price stays above Rs 174.50. Intraday resistance is near Rs 178 level.

Aluminium: MCX Aluminium is expected to trade in range of Rs 138 - 140. Either side sustained breach could be decisive. Lower supports are at Rs 136 - 134, whereas resistances are at Rs 142 - 144.

Crude Oil: Intraday pullback is expected in MCX Crude Oil as long as price stays above Rs 4,610. Higher resistances are at Rs 4,680 - 4,720 levels. Lower supports are at Rs 4,580 - 4,550.