Commodity outlook: Gold has strong support at Rs 29,270 level

Gold prices continue to trade flat after the slide last week. News of China and US to hold trade talk this month is lending some supports at lows. would cap gains.

Base metals were seen gaining some strength after the recent sell off. Chiles Escondida has managed to pull out last minute deal averting strike. Inventories continue to remain mixed. Focus will be on Chinese commerce ministry visit to the US which could lend some medium term direction to the metal.

Crude oil consolidated for another session after the brief selling, and jump in inventories. OPEC report released midweek pressurised the commodity.


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

MCX Gold: MCX Gold looks to trade in a consolidative range for the session having support at Rs 29270 whereas resistance is at Rs.29570. Price sustained break on either side will give further trend direction.

Gold (SPOT): Recent low $1160 will remain as strong support for Spot Gold whereas resistance is at $1190 - 1195. Downside will extend only if price break and sustains below support.

MCX Silver: Immediate support for MCX Silver remains at Rs.36685 and downside for the metal will extend only if price break and sustains below the same. Resistance is capped at Rs.37025 – 37150 levels. Sell only if price break and sustains below support.

Silver (SPOT): Spot Silver has strong support at $14.45 resistance is capped at $14.80 – 14.95. Sideways consolidation within the given range will be seen.

MCX Copper: MCX Copper has strong resistance at Rs.410 – 413.50 whereas short-term supports are placed at Rs.402 – 400 levels. Bias remains negative and selling around Rs.407 – 408.50 zone recommended.

MCX Nickel: MCX Nickel has strong short-term support at Rs.915 – 905 whereas resistance is at Rs.937 – 945 area. For the session, buying near support OR above resistance zone is advised. Higher resistance is at Rs.965.

MCX Crude Oil: MCX Crude Oil will continue to trade in a range of Rs.4540 - 4630. Price sustained break on either side will give further trend confirmation.

MCX Natural Gas: MCX Natural Gas looks weak as long as Rs.207.50 is capped as resistance. Supports are placed at Rs.203.50 – 201 levels. Selling is advised for the day.

MCX Lead: MCX Lead has strong short-term resistance at Rs.144.25 whereas immediate support is at Rs.138.80. Selling near resistance OR below support is advised. Lower support is at Rs.137 – 135.50.

MCX Zinc: MCX Zinc will be trading in a range for the session having support at Rs.164.70 whereas resistance is at Rs.167. Price sustained break on either side will give further trend direction.

MCX Aluminium: MCX Aluminum looks weak in short-term and is likely to target Rs.140 – 139.15 levels. Selling on rise is advised. Resistance remains at Rs.143.50 – 144.50.