Commodity outlook: Gold, silver may get squeezed in a thin band

NEW DELHI: Precious metals are expected to move in a tight range on Tuesday.

Agri commodities are likely to see flat to negative movement.

Here’s a look at how the key commodities are likely to behave today.

Bullion counter

Gold: MCX Gold for August is expected to trade in the range Rs 30,800-31,000. Either side, sustained breach could be decisive, says Motilal Oswal Securities in its report. Lower support is seen at Rs 30,600 with resistance at Rs 31,200.

Silver: MCX Silver is expected to trade in Rs 39,850-39,400.

Agri commodities

Turmeric futures for June are likely to trade with a downside bias and test Rs 6,900-6,850 if they break Rs 7,000 level. At the spot market, prices of turmeric have been stagnant amid the monsoon forecast. Farmers and traders are looking at the early trends of monsoon, which is favourable for high yield, says SMC Global Securities.

Soybean futures are expected to trade with a bearish bias and test Rs 3,450. Mustard seed futures may trade sideways in Rs 3,930-3,960.

Chana futures are seen to trade with a downside bias and move below Rs 3,560.

Base metals

Copper can take support near Rs 457 and face resistance near Rs 468. Copper was largely unchanged on Tuesday as the market took a breather after climbing to a near two-week high in the previous session. Support came from potential supply disruptions amid wage talks at the world’s biggest mine.

Zinc can take support near Rs 208 and resistance near Rs 212 while lead can draw comfort near Rs 166 with a resistance point near Rs 170.

Nickel may remain sideways with upside bias. It can take support near Rs 1,030 and move towards Rs 1,050. Aluminium may move sideways as it can take support near Rs 154 and resistance near Rs 158 on MCX.

Crude Oil/Natural Gas: Crude oil can find support near Rs 4,300 and it has resistance near Rs 4,420 on MCX. The Organization of the Petroleum Exporting Countries (OPEC) is due to meet in Vienna on June 22 to decide whether the group and non-OPEC members, including Russia, will raise output to ease concerns over potential supply shortfall from Iran and Venezuela.

Natural gas: Natural gas may remain on the weaker side as it can slip lower towards Rs 195 on MCX.