Commodity outlook: Gold and copper likely to move higher

Gold prices inched up on Thursday, as the euro rose to a two-week high against the US dollar. The investors are now waiting for meetings of key central banks and the US-North Korea summit next week.

In metals, copper hit its highest level this year lifted by concerns and by healthy appetite for cyclical assets.

In energy sector, crude oil rose on concerns about a plunge in exports from Venezuela, although surging US production kept gains in check.

Here’s Motilal Oswal Securities’ take on how different commodities are likely to trade ahead.

Gold: The yellow metal on the MCX has immediate resistance at Rs 31,050 while supports are at Rs 30,900–30,850. If prices sustain above the resistance zone then the rally may extend towards Rs 31,150–31,250 area.

Copper: The commodity will continue its positive run up and is likely to target Rs 490 – 493 levels. Supports are at Rs 482 – 480. Buying of dips is advised.

Crude Oil: It has strong short-term support at Rs 4,310 while resistance is capped at Rs 4,440. Trading on extreme is advised i.e. buying near support or selling near resistance is advised.