October 21, 2020

Gold futures: Commodity outlook: Gold edged greater; here is how others might fare



NEW DELHI: Base metals and gold futures had been buying and selling with positive aspects whereas silver and power counters had been within the crimson as Federal Reserve stated it can to no matter it was attainable to raise the economic system.

Gold rose 0.08 per cent whereas silver dropped 0.35 per cent. Base metallic counters climbed as much as 0.5 per cent. In the meantime, crude oil added 0.03 per cent and its peer pure fuel was down 0.28 per cent.

“Gold’s bullish outlook will stay intact as a consequence of elevated demand for secure belongings amid surging pandemic circumstances and a weaker US greenback. Hopes of contemporary coverage easing measures from Central banks and escalating geopolitical uncertainties additionally lifted the feelings of the yellow metallic. Nonetheless, instant revenue taking can’t be dominated out as a consequence of weak bodily demand and file excessive costs,” stated Hareesh V, Head Commodity Analysis at Geojit Monetary Providers.

NCDEX Agridex, an agricultural futures index that tracks the efficiency of the ten liquid commodities, was down 0.30 per cent or 3.15 level at 1,059.30 led by losses in coriander and mustard seed.

Right here is how SMC International expects commodities to fare immediately:


Bullion: Bullion counters might lengthen the rally the place gold might check Rs 53,500 and take assist close to Rs 51,650 whereas silver might check Rs 68,300 and take assist close to Rs 63,800.

Base metals: Base metals might commerce sideways with a bearish bias. Copper (Aug) can transfer in direction of Rs 506 and face resistance close to Rs 513. Zinc (Aug) might transfer in direction of Rs 184 and take assist close to Rs 178. Lead (Aug) can transfer in direction of Rs 152 whereas taking assist close to Rs 147. Nickel (Aug) commerce bullish bias the place it could take assist close to Rs 1,030 and resistance close to Rs 1,070. Aluminum (Aug) might transfer in direction of Rs 144 whereas taking assist close to Rs 138.30.

Power: Crude oil might commerce sideways with a bullish bias the place it could take assist close to Rs 3,020 and resistance is seen close to Rs 3,170. Pure fuel might commerce in a variety the place resistance is seen close to Rs 148 and assist close to 136.

Spices: Turmeric futures (Aug) is anticipated to consolidate within the vary of Rs 5,700-5,800. Dhaniya futures (Aug) buying and selling close to its six months excessive will presumably take assist close to Rs 6,300-6,250 and the draw back might stay capped. Cardamom futures (Aug) is on a restoration section and this shall proceed until Rs 1,570-1,590.

Oilseeds: Soybean futures (Aug) is anticipated to carry on to the assist close to Rs 3,720, whereas the upside might stay capped close to Rs 3,795. Mustard futures (Aug) is anticipated to commerce greater in direction of Rs 5,000-5,030. Soy oil (Aug) is more likely to witness consolidation within the vary of Rs 845-860, whereas CPO (Aug) might consolidate within the vary of Rs 710-720.

Different commodities: Cotton futures (July) is anticipated to commerce sideways within the vary of Rs 16,000-16,200. Chana futures (Aug) is anticipated to witness a consolidation within the vary of Rs 4,100-4,140. Mentha oil futures (Aug) buying and selling close to its three 12 months low is anticipated to go down additional in direction of Rs 915-900, dealing with resistance close to Rs 940.