Commodity outlook: Crude oil’s downside limited, gold may rise

Gold prices traded lower for a second consecutive session, and were on way to hit six-month low, as the US dollar moved higher. Fears of escalating trade tensions did little to support the safe haven metals.

In base metals, copper continued to trade close to weakest levels in nearly three months.

In energy market, oil edged higher after US asked all countries to stop crude imports from Iran.

Here’s a lowdown on the outlook of different commodities by brokerage Motilal Oswal Securities:

Gold: Intraday positive move looks possible in MCX Gold (Aug), however, upside too will be limited around Rs 30,845-30,900, which will act as key resistance levels. Supports are placed at Rs 30,500-Rs 30,470.

Copper: MCX Copper looks to trade in a range of Rs 447-456.50 in the short term. Price sustained break on either side will give further trend direction.

Crude: MCX Crude Oil has strong support at Rs 4,825-4,790, while resistance is at Rs 4,915-4,950. Buying on dips near support is advised.