Commodity outlook: Natural gas falls; here's how others may fare

NEW DELHI: Energy counters dropped while gold and silver gained in Wednesday’s trade as flaring tensions between the US and China overshadowed reopening of economies.

Gold futures gained 0.13 per cent to Rs 45,809 while silver futures added 0.72 per cent Rs 42,198. Natural gas was under pressure and down 1.87 per cent to Rs 157.20.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters can remain on a positive path. Gold can move towards Rs 46,000 while taking support near Rs 45,500 while silver may move towards Rs 42,500 while taking support near Rs 41,200.

Base metals: Base metals may witness positive movement. Copper can move towards Rs 409 while taking support near Rs 395. Zinc can move towards Rs 154 by taking support near Rs 148. Lead can move towards Rs 135 while taking support near Rs 130. Nickel can recover towards Rs 930 while taking support near Rs 900. Aluminum can remain in the range of Rs 130-133.

Energy: Crude oil may extend its bounce back. It can recover towards Rs 1,950 while taking support near Rs 1,750. Natural gas can move higher and can test near Rs 165 by taking support near Rs 150.

Spices: Turmeric futures (May) is unlikely to recover as it is facing resistance near Rs 5,450 taking negative cues from the spot markets. The price outlook of cardamom futures is bleak and in days to come it may go down further to test Rs 1,650-1,600. Jeera futures (May) is likely to consolidate and trade with a downside bias facing resistance near Rs 13,800 owing to slump in demand.

Oilseeds: Soybean futures (May) may plunge towards Rs 3,760-3,740, as there are anticipations that soymeal exports from India may slump in days to come. Mustard futures (May) is expected to take support near Rs 4,060 supported by rising demand from the millers. Soy oil futures (May) is expected to plunge towards Rs 760-755, while CPO futures (May) may descend to test Rs 570-565.

Other commodities: Cotton futures (May) is likely to witness a sell on rise and descend towards Rs 15,000- 14,800. Chana futures (May) is expected to take support near Rs 4,110. Guar gum futures (May) is expected to plunge towards Rs 5,050-4,980.