Commodity outlook: Gold looks to clear Rs 31,150 on MCX

Gold and silver prices hit a rough patch on Tuesday after demand for precious metals from jewellers, industries, and retailers slackened.

Crude oil prices slipped for the 11th consecutive session in the international market as US President Donald Trump said he hoped there would be no oil output reductions.

So, how will various commodities look like today? Let's check out some projections from brokerage SMC Global Securities.

Bullion: Gold is bracing for support near Rs 30,850, but Rs 31,150 may act as a resistance on MCX. Silver can take comfort from Rs 36,500, with a likely resistance near Rs 36,900.


Base metals: Base metal prices may see some lower level buying. Copper can face headwinds near Rs 435, but may find relief near Rs 427. Santiago-based Codelco posted the lowest quarterly copper production this year in the third quarter, according to Chile copper agency Cochilco.

Zinc is likely to face resistance near Rs 187 and support near Rs 183. Chinese steel prices came close to their lowest levels in months on Tuesday, weighed down by concerns over weaker demand for the building material in the world's top market.

Lead can take support near Rs 138, but upside could be capped near Rs 143. Nickel can take support near Rs 815 while Rs 835 may serve as a hurdle on the upside. Aluminium can take support near Rs 140 levels while it has resistance near Rs 144 levels.

Spices: Turmeric futures (December) are expected to trade with a downside bias facing resistance near Rs 6,735 levels. The sale of turmeric went down in Erode. Though only medium and poor quality turmeric arrived for sale, buyers purchased minimum quantity for their local demand.

Only 40 per cent of the arrivals were sold. Regarding the price, both finger and root varieties were trading in the negative. The finger turmeric decreased by Rs 300 a quintal and the root variety by Rs 200. A lower level buying can be seen in jeera futures (December) around Rs 20,280 levels and the downside may get capped.

Spot jeera prices ruled higher in key markets in the country due to normal arrival and better demand. Prices moved up by Rs 15-25 per 20kg at the key Unjha, Rajkot and Gondal markets in Gujarat. Coriander futures (December) are expected to maintain its uptrend taking support near Rs 6,335 levels.

Oilseeds: Gains in soybean futures (December) may get restricted as it may face resistance near Rs 3,475 levels. Soybean traded higher at major spot markets across the country on lower arrivals and good domestic demand.

Mustard futures (December) are expected to take support near Rs 4,120 levels and trade with an upside bias towards Rs 4,190. Demand in mustard oil was average during the last 3-4 weeks, but consumption is expected to increase slightly in coming weeks. The consumption demand for mustard oil usually rises in the winter as it is considered as warm and used more as cooking oil, specially in North India.

Also, the consumption increases with shifting of demand from palm to mustard oil in the winter season. The trend of CPO futures (Nov) is bearish as it may slip further to test Rs 540-538 levels.

Other commodities: Cotton futures (December) are expected to witness correction towards Rs 22,350 levels, taking negative cues from the international market. Guar seed futures (December) are seen to trade with a bullish bias, taking support near Rs 4,735-4,675. On the spot markets, guar seed and guar gum price edged higher due to good demand from stockists, traders and crushers.

Stockists and traders along with crushers are buying guar seed due to expectations of prices to surge to Rs 5,000 level soon. Business activity in the spot market is brisk and stockists are buying guar seed in large quantity due to prospects of a better return. The trend of chana futures (December) is bullish and it will probably take support near Rs 4,550-4,500 levels.

Farmers in the country have sown chana across 2.71 million hectares as of Wednesday, down 32.9 per cent on year, data released by the farm ministry showed. Chana acreage as of Wednesday was also lower than the five-year average of 2.83 million hectares for the corresponding period.