Commodity outlook: Bullion in a thin band; comfort for oil

NEW DELHI: Base metals may be in throes of profit booking at higher levels today as the euro zone crisis plays out in full force.

The bullion counter may get stuck in a tight range.

What’s going on?

Bullion market: Precious metals gold and silver may move in a range. While a strong US dollar is capping the upside, Middle East tensions and political uncertainty in Italy are offering support. Gold can take support near Rs 31,000 and face resistance near Rs 31,350 on MCX. Meanwhile, silver can find support near Rs 39,600, with resistance at Rs 40,200, says SMC Global Securities.

Crude oil: Crude oil can continue to find comfort near its current levels after a sharp drop recently. It can take support near Rs 4,480, with resistance near Rs 4,580 on MCX.

Natural gas: Natural gas can move sideways as weather-related demand in the US will give further direction to the prices. Overall, it can move in a range of 195-203 on MCX, says SMC Global Securities.

Agri commodities
Turmeric futures for June are likely to take support near Rs 7,050-7,000 levels and trade with an upside bias. In the spot market, sentiment remains firm as some fresh orders for turmeric may be expected from the North as the season draws to a close.

Soybean futures: June soybean futures are likely to fall further towards Rs 3,560 if these trade below Rs 3,600. Spot soybean was priced down Rs 25 to Rs 3,500-3,675 per 100kg due to lacklustre demand from crushers and traders.

Chana futures for June delivery are expected to take support near Rs 3,565-3,550 taking positive cues from the spot market.

Base Metals
Copper: Immediate strong support for MCX copper is at Rs 459-458 with resistance at Rs 462.50-464.50. Price could test Rs 454-452 levels.

Nickel: Short-term support for MCX Nickel remains at Rs 985-980 whereas resistance is at Rs 1,015 and Rs 1,025.