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

NEW DELHI: Barring energy counters, all metal and bullion commodities traded with gains on Monday as worries over climbing Covid cases mounted given it threatens a recovery in economic conditions.

Crude oil dipped 0.62 per cent as supply increased while its peer natural gas fell 2.11 per cent. Silver and gold gained up to a per cent. Base metals like zinc, lead, copper and nickel added up to 3 per cent.

NCDEX Agridex, an agricultural futures Index which tracks the performance of the ten liquid commodities, was down 0.13 per cent or 1.4 points at 1,040.40 due to losses in cotton seed oilcake, jeera and mustard seed.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters may post correction from higher levels where Gold may test Rs 48,400 and face resistance near Rs 49,200 while silver may test Rs 49,350 and may face resistance near Rs 51,800.

Base metals: Base metals may trade sideways with a bullish bias. Copper can move towards Rs 500 while taking support near Rs 490. Zinc may move towards Rs 173 and take support near Rs 169. Lead can move towards Rs 149 while taking support near Rs 145. Nickel may break the resistance and rally towards 1030, taking support near Rs 1,005. Aluminum may move towards Rs 142 while taking support near Rs 137.

Energy: Crude oil may trade sideways to bullish where it may test Rs 3,140 and take support near Rs 2,920. Natural gas may bounce towards resistance and test Rs 142 and take support near Rs 134.

Spices: Turmeric futures (Aug) is expected to consolidate in the range of Rs 5,600-5,685. Dhaniya futures (Aug) is likely to trade with a positive bias in the range of Rs 6,050-6,150. Cardamom futures (Aug) may witness an extended correction towards Rs 1,350-1,320.

Oilseeds: Soybean futures (Aug) is expected to witness a consolidation in the range of Rs 3,700-3,800. Mustard futures (Aug) may trade sideways in the range of Rs 4,600-4,700. Soy oil futures (Aug) is likely to trade with a downside bias in the range of Rs 825-835, while CPO futures (July) may consolidate in the range of Rs 678-688 with upside getting capped.

Other commodities: Cotton futures (July) is expected to remain stable in the range of Rs 16,000-16,200. Guar gum futures (Aug) is expected to face resistance near Rs 5,550, while guar seed futures may remain below Rs 3,700 and witness profit booking from higher levels. Chana futures (Aug) is expected to witness a steep fall towards Rs 4,100-4,050, facing resistance near Rs 4,150.