Commodity Outlook: Buy gold, copper on dips

Gold prices were trading higher due to a weaker dollar in the evening trade on Monday. On the base metal front, copper climbed from a three-month low as some bit of profit taking from shorts, while fundamentals pointed to a tightening spot market.

Those trade tensions have offset signs of stronger demand in the physical market, where inventories are falling and spot prices are at the biggest premium to futures in two years. Crude oil was also trading in green.

Here’s a lowdown on the outlook of different commodities by brokerage Motilal Oswal Securities:


MCX Gold: MCX Gold is expected to trade in range Rs 30350-30700 zone. Immediate resistance is placed at Rs.30500. Dip buying for a pullback rally is advised as long as price holds above Rs 30350.

Gold spot: Spot Gold is expected to trade with positive bias above $1,245. Tests of higher resistance at $1255 / 1260 looks possible.

MCX Silver: MCX silver (Sept) remains weak in the short-term below Rs.40050. Immediate resistance is placed at Rs.39800 - 39900 zone whereas supports are placed at Rs.39400 - 39300 zone. Selling near resistance is advised.

MCX Copper: MCX Copper prices are expected to trade in a range of Rs.445 - 455 with positive bias. Dip buying is advised.

MCX Nickel: MCX Nickel prices remains bearish below Rs.1030. Pullback towards immediate resistance at Rs.1015 can be used as a selling opportunity. Lower supports are placed at Rs.995 - 985.

MCX Crude Oil: MCX Crude Oil is expected to trade in range Rs.4980 - 5110. Either side sustained breach could be decisive. Higher resistance are placed at Rs.5160 - 5190, whereas immediate supports are placed at Rs.5070 / 5020.

MCX Natural Gas: MCX Natural Gas has a strong support zone at Rs.199 - 198. Immediate resistance are placed at Rs.203 - 204.50. As long as holding above support zone, buying for a pullback rally is advised.

MCX Lead: MCX Lead has strong support at Rs.164 / 163 zone. Immediate resistance is placed at Rs.167.50. As long as above Rs.164, buying for a pullback is advised.

MCX Zinc: MCX Zinc is trading near strong support zone at Rs.198 - 197. Immediate resistance are placed at Rs.200.50 - 202. Buying is advised as long as above Rs.197.

MCX Aluminium: MCX Aluminium remains bullish above Rs.146. Buying is advised as long as price holds above the same. Immediate resistances are placed at Rs.148 / 149.20. Buying is advised.

MCX Brass: MCX Brass looks to trade in range Rs.340 / 380.