Commodity outlook: Lead has strong resistance at Rs 150.70-151.50 levels

Gold prices edged up, supported by technical buying amid worries over inflation in emerging markets, but gains were curbed as the dollar rose broadly on heightened concerns about international trade conflicts.

Copper fell to its lowest level in more than a year on Wednesday, down for a fifth straight session amid simmering U.S.-China trade tensions.Alcoa's alumina production has likely been hit by a four-week strike at its Western Australian operations, the Australian Workers' Union, raising the prospect of a widening supply deficit in the key aluminium-making ingredient

Oil extended losses, falling towards $77 a barrel, as a tropical storm hitting the U.S. Gulf coast weakened, offsetting support from forecasts of lower U.S. inventories and sanctions against Iran.


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

MCX Gold: MCX Gold has immediate stiff resistance at Rs.30450 whereas supports are placed at Rs.30230 - 30160 levels. Upside for the metal will extend if price break above the resistance levels.

Gold (SPOT): Support for Spot Gold is placed at $1185 whereas resistance is at $1205 - 1210. Price break above resistance will resume positive move towards $1222.

MCX Silver: MCX Silver has immediate strong resistance at Rs.37350 whereas support is at Rs.36900 - 36770 area. Intraday selling is advised as long as price holds below resistance.

Silver (SPOT): Spot Silver is likely to test $13.85 - 13.55 area whereas resistance is at $14.40 - 14.65 area.

MCX Copper: MCX Copper will be trading in a range for the session. Strong support is at Rs.414.50 whereas resistance is at Rs.422.50. Trading on extreme is advised i.e. buying near support OR selling near resistance is advised.

MCX Nickel: MCX Nickel has support at Rs.890 - 885 whereas resistance is at Rs.913 - 920 area. Initial pullback towards resistance area could be seen.

MCX Crude Oil: MCX Crude Oil has major resistance at Rs.5125 whereas short-term resistance is at Rs.5035. Initial pullback towards Rs.5000 - 5035 zone will be a good selling opportunity. Support is at Rs.4915 - 4860 levels.

MCX Natural Gas: MCX Natural Gas will be trading in a range for the session. Support remains at Rs.202 whereas resistance is at 207.50.

MCX Lead: MCX Lead has strong resistance at Rs.150.70 - 151.50 whereas supports are placed at Rs.148.30 - 147.15 levels. Bias looks weak as long as price holds below resistance.

MCX Zinc: MCX Zinc has immediate support at Rs.173.50 - 173 levels whereas resistance is at Rs.176.45 - 177.15 area. Intraday pullback towards resistance area could be seen.

MCX Aluminium: MCX Aluminum looks weak below Rs.149.70 - 151 as it will act as strong resistance. Support is at Rs.146.80 - 145.50. Selling around Rs.148.50 - 149 is advised.