January 17, 2021

Commodity methods: Gold, silver, crude, base metals



By Tapan Patel
HDFC Securities


Commodity costs traded combined on Monday. Bullion costs have been weak whereas crude oil and base metals have been buying and selling greater. Here’s a take a look at how totally different commodities are behaving in right this moment’s market.

Outlook: Bullion
Bullion costs traded weak on Monday with spot gold costs at COMEX buying and selling practically 1 per cent down at $1,835 per ounce, whereas spot silver costs at COMEX have been buying and selling regular under $24 per ounce in morning. Bullion witnessed promoting strain on vaccine rollouts and approval of emergency use of vaccine within the US. We count on bullion costs to commerce sideways to down in present vary within the absence of any key triggers. Bullion costs could witnessed contemporary shopping for if US finalises the COVID-19 bundle deal.

Buying and selling Technique: MCX Gold February resistance for the day lies at Rs 49,400 per 10 gram, with help at Rs 48,700 per 10 gram. MCX Silver March help lies at Rs 62,500 per kg, resistance at Rs 65,000 per kg.

Outlook: Crude Oil
Crude oil costs traded greater with benchmark NYMEX WTI crude oil buying and selling over half a % up close to $46.88 per barrel within the morning commerce. Crude oil costs traded up on demand progress prospects as vaccine rollouts start in UK whereas US began vaccination marketing campaign from this week. The approval of vaccine from UK, Canada and emergency use from US has raised optimism for gasoline demand restoration. Crude oil costs have been anticipated to commerce sideways to up for the day supported by optimistic world cues.

Buying and selling Technique: MCX Crude Oil December help lies at Rs 3,390 per barrel, with resistance at Rs 3,510 per barrel.

Outlook: Base Metals
Base metals traded greater on Monday, paring earlier losses within the morning commerce as vaccine rollouts at world scale boosted funding sentiments into riskier property. Base steel costs are in sturdy bull run over demand progress restoration from China and optimism from vaccine rollouts. Zinc and nickel costs witnessed rally on resumption of Brexit talks, whereas copper costs resumed its uptrend on Monday. Base metals have been anticipated to commerce sideways to up for the day, supported by weaker greenback over threat on sentiments.

Buying and selling Technique: MCX Copper December help lies at Rs 601 and resistance at Rs 610. MCX Zinc December help lies at Rs 215, resistance at Rs 221. MCX Nickel December help lies at Rs 1,290, with resistance at Rs 1,340.

By Ravindra Rao, Kotak Securities


MCX GOLD Feb has witnessed a robust rebound after retracing 50 per cent of the current rally (Rs 47,551 to Rs 50,175) at Rs 48,860. Nonetheless, the value continued to consolidate within the band of Rs 48,800-Rs 49,550 since the previous couple of periods. The upper band is resisted by 21-day EMA at Rs 49,550 and decrease band help is from 50 per cent Fibonacci retracement degree, together with the rising window help at Rs 48,800. In the meantime, the power index (RSI) is within the zone of 48.8, suggesting sideways development. Therefore, both aspect break of the vary would determine the development in gold futures.

Technique: Purchase MCX Gold Feb at Rs 48,900. Goal Value: Rs 49,500. Cease loss: Rs 48,600.

MCX SILVER March futures is consolidating within the band of Rs 62,700-Rs 64,800.The decrease band is supported by the 21-day EMA at Rs 62,840, adopted by Rs 62,200 (proper shoulder of inverse HNS). So long as it holds, bulls might need the sting to push costs additional in direction of the speedy resistance of Rs 64,800, adopted by Rs 65,500. Nonetheless, the failure to carry Rs 62,200 would negate the sample. In the meantime, RSI is at 55, suggesting sideways to greater development. For the day, the value is anticipated to maneuver within the band of Rs 62,200-64,800 with sideways to optimistic bias.

Technique: Purchase MCX Silver March at Rs 62.900. Goal Value: Rs 64,500. Cease loss: Rs 62,200.