Commodity outlook: Sell gold on any rise, buy nickel on dips

NEW DELHI: Gold remained under pressure in the first half of the session on back of strength in the dollar, but gained in the latter half after release of the US inflation number.

In base metals, copper prices were supportive after nearing bear-market territory, with some analysts suggesting recent selling on trade threats might have been overdone.

Crude oil prices were set for second weekly fall after Libya reported that it would resume oil exports. Meanwhile the market continued to monitor US-China trade tensions.


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

MCX Gold: MCX Gold remains bearish as long as Rs.30300 is capped as resistance. Immediate resistances are at Rs.30130 - 30230 zone whereas supports are at Rs.30000 / 29800 level. Selling on rise is advised.

Gold (SPOT): Spot Gold has immediate resistance at $1248 and support at $1238. Trend remains bearish as long as $1255 is capped.

MCX Silver: MCX silver has strong support at Rs.39000 level. Failure to sustain below the same may result in profit booking / pullback rally targeting Rs.39250 - 39400 zone. Breach below Rs.39000 may deepen the correction.

Silver $ (SPOT): Spot Silver remains bearish below $16.05. Lower support remains at $15.75.

MCX Copper: Sideways consolidation is expected in range of Rs.417 - 426. Either side sustained breach could be decisive going ahead.

MCX Nickel: MCX Nickel has strong supports at Rs.950 / 935 whereas resistances are at Rs.965 / 975 levels. Pullback is likely to continue as long as price stays above Rs.935. Dip buying is advised.

MCX Crude Oil: Trend remains bearish in MCX Crude Oil as long as Rs.4900 is capped as resistance. Immediate resistance is at Rs.4800 - 4830, whereas supports are at Rs.4740 - 4700. Selling is advised.

MCX Natural Gas: MCX Natural Gas is facing stiff resistance at Rs.195 - 196 levels. Lower supports are at Rs.190 / 188.

MCX Lead: MCX Lead is facing stiff resistance at Rs.150 - 152 levels. Selling is advised as long as price stays below the same targeting lower supports at Rs.147 - 146.

MCX Zinc: The broader trend remains bearish in MCX Zinc, however, price is taking support near Rs.173.50 level and a sideways consolidation above the same is likely. Intraday resistances are at Rs.178 / 180.50.

MCX Aluminium: MCX Aluminium has been outperforming other base metals and may continue to do so. It has immediate resistances at Rs.141.70 / 143.80 whereas supports are at Rs.138.50 - 140 zone. Dip buying is advised.