Commodity outlook: Gold gains; here's how others may fare

NEW DELHI: Bullion counters gained on Thursday on grim growth outlook from the US Fed Base metals and energy counters also appreciated as many economies reopened leading to a surge in demand.

Gold futures were up 0.29 per cent to Rs 46,115 while natural gas added 0.41 per cent to Rs 123.60. Crude oil futures advanced 1.2 per cent to Rs 1,934.

“US Federal Reserve’s downbeat economic projection and hopes of further economic stimulus support gold’s safe haven demand. Concerns over the next wave of virus outbreak will also assist the sentiments. Meanwhile, a steady dollar ahead of key U.S economic releases and limited physical market activities are likely to cap major gains,” said Hareesh V- Head Commodity Research at Geojit Financial Services.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters can trade on a positive path. Gold can take a test Rs 46,300 by taking support near Rs 45,500 while silver may take support near Rs 42,700 and resistance near Rs 43,500.

Base metals: Base metals may witness mixed movement. Copper can move towards Rs 405 while taking support near Rs 397. Zinc can move towards Rs 155 by taking support near Rs 150. Lead can move towards Rs 132 while taking support near Rs 128. Nickel can recover towards Rs 940 while taking support near Rs 910. Aluminum can remain in range of Rs 128-132.

Energy: Crude oil may witness trade in range as it can take support near Rs 1,850 and resistance near Rs 1,960. Natural gas can remain under pressure as it can test Rs 120 by facing resistance near Rs 130.

Spices: Turmeric futures on the national bourse has made a new fresh 4 year low at Rs 5,198 and this bearish trend is likely to persist as it is likely to test Rs 5,150-5,100. Cardamom futures (June) may witness recovery till Rs 1,800-1,830. Jeera futures (June) may consolidate in the range of Rs 13,450-13,690 as the fundamentals are bearish. The short covering in Dhaniya futures (June) is likely to face resistance near Rs 5,700-5,725.

Oilseeds: Soybean futures (June) is expected to trade with a downside bias facing resistance near Rs 3,735. Mustard futures (June) is looking bullish for Rs 4,250-4,270, hence a dip towards Rs 4,170-4,200 can be considered as a buying opportunity. Soy oil futures (June) may test the resistance near Rs 772, while CPO futures (May) is expected to trade higher towards Rs 610-615.

Other commodities: Cotton futures (May) may trade higher towards Rs 16,000-16,100. Chana futures (June) may trade sideways in the range of Rs 4,110-4,170. Castor seed futures is trading nearly just to its yearly low of Rs 3,608 and going ahead this bearish trend in the June contract will possibly get extended to Rs 3,600- 3,550.