Commodity outlook: Gold, silver may trade in a range; crude likely to gain

NEW DELHI: Gold and silver on Tuesday may trade with sideways bias on mixed fundamentals while base metals counter can remain subdued.

Here’s a look at the likely trends that may rule key commodities:

Bullion: MCX Gold faces stiff resistance zone at Rs 30,800- Rs 30,900 levels, says Motilal Oswal in its report. Sideways to negative move is expected in the range between Rs 30,755- Rs 30,510. Selling near range high is advised, the brokerage added.

MCX Silver is expected to trade sideways to positive above Rs 39,300.

Agri commodities: Cotton futures (July) may witness volatility and trade sideways to face resistance near Rs 22,800 levels amid increased tensions in the global cotton market over a trade dispute between the biggest exporter United States and top consumer China, SMC Global Securities says.

Mustard seed futures (July) will possibly fall further towards Rs 3,870 levels. Crushers demand for mustard seed is slow due to weakening trend in mustard oil and slow offtake in mustard cake, which has resulted in higher disparity in crushing.

Guar seed futures (July) is likely to trade with a downside bias and fall further towards Rs 3,500 levels, if breaks the support near Rs 3,550 levels; while guar gum futures (July) may plunge towards Rs 7,400 – Rs 7,300 levels.

Base metals: MCX Copper remains bearish below Rs 457. Immediate resistance is placed at Rs 452-Rs 454, whereas supports are placed at Rs 448 – Rs 445 levels.

Zinc can take support near Rs 195 and resistance near Rs 202 while lead can take support near Rs 162 and can face resistance near Rs 166.

Crude Oil, Natural Gas: Crude oil may trade on firm note on uncertainty over Libyan oil exports, although plans by producer cartel Opec to raise output continued to drag. Crude oil can face resistance near Rs 4,720 and can take support near Rs 4,600 in MCX. Natural gas can trade with sideways bias as it can face resistance near Rs 202 and can take support near Rs 196.