Commodity outlook: Silver looks to break shackles, eyes high

It turned out to be a listless trade for gold and silver on Wednesday as investors trained their sights on US Fed policy decision later in the day.

MCX Gold futures slipped 0.04 per cent to Rs 31,144 per 10 grams at around 10.30 am. Silver futures were down 0.26 per cent at Rs 40,584.

Oil prices globally hit a soft patch. Rising supply in the US and expectations that Opec’s voluntary output cuts could be loosened pushed down the price graph.

Where are key commodities heading for during the day?

Gold futures for August are expected to move mixed in Rs 30,960-31,260, with a cap on the upside. Futures for silver in July may show an upside bias taking support near Rs 40,400-40,300, according to SMC Global Securities.

The brokerage house believes that base metal counters are likely to turn weak in the near term. Global base metal prices mostly came down on Wednesday as investors tracked the US Federal Reserve’s policy meeting today. The central bank is expected to hike interest rates this time around.

“Crude oil is expected to trade sideways in the range of Rs 4,410-4,510 levels,” SMC Global said in a report.

Coming to agri commodities, SMC believes that turmeric futures for July would trade with an upside tilt towards Rs 7,250-7,280, taking positive cues from the spot market.

However, soybean July futures are seen to run out of gas and test Rs 3,380-3,350. Spot soybean, soybean meal and soy oil dropped at the key market across the country, weighed down by slow demand.

Spot soybean gave up Rs 50 at Rs 3,300-3,450 per 100kg in Indore while refined soy oil dipped Rs 5 to Rs 740. Similarly, soybean meal was Rs 500 down at Rs 28,500 per tonne.