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

NEW DELHI: Barring zinc, all metals and energy commodity futures were trading with gains on Friday even as tensions between US and China threatened disruptions in trade.

Silver jumped over 2 per cent while crude oil climbed nearly 3 per cent. Gold, copper and nickel traded with gains up to 0.5 per cent. Meanwhile, zinc dropped 0.4 per cent to Rs 154.40.

"Increase in jobless claims in the US supports the gold prices as safe haven demand. We expect Gold may trade positive towards Rs 47200 to 47300 levels. For intraday perspective, traders can buy gold around Rs 46,500 to 46,600, with the stop loss of Rs 46,250 and for the target of Rs 47,300 to 47,400. In the international market, gold can test $1750 to $1760 levels,” said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.

Here is how SMC Global expects commodities to fare today:

Bullion: Bullion counters can trade on a positive path. Gold can test Rs 46,800 by taking support near Rs 46,200 while silver may test Rs 44,800 while taking support near Rs 43,500.

Base metals: Base metals may witness mixed movement. Copper can move towards Rs 408 while taking support near Rs 396. Zinc can move towards Rs 157 by taking support near Rs 152. Lead can move towards Rs 134 while taking support near Rs 128. Nickel can recover towards Rs 930 while taking support near Rs 900. Aluminum can remain in range of Rs 129-132.

Energy: Crude oil may witness further upside movement as it can test Rs 2,100 by taking support near Rs 1,950. Natural gas can witness some bounce back as it can test Rs 134 by taking support near Rs 124.

Spices: Turmeric futures on the national bourse has made a new fresh 4 year low at Rs 5,160 and this bearish trend is likely to persist as it is likely to test Rs 5,100. Cardamom futures (June) may witness recovery till Rs 1,800-1,830. Jeera futures (June) may plunge towards Rs 13,200 as the fundamentals are bearish. The short covering in Dhaniya futures (June) is likely to face resistance near Rs 5,675-5,705.

Oilseeds: Soybean futures (June) is expected to trade with a downside bias facing resistance near Rs 3,735. Mustard futures (June) is likely to trade sideways in the range of Rs 4,150-4,225. Soy oil futures (June) may trade sideways in the range of Rs 760-770, while CPO futures (May) is expected to consolidate in the range of Rs 595-612.

Other commodities: Cotton futures (May) may take support near Rs 15,000 and the downside may remain capped. Chana futures (June) may trade sideways in the range of Rs 4,120-4,160. 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.