Commodity outlook: Gold has support at $1,200, nickel setup bearish

Gold remained under pressure, marking the lowest in a year on back of strengthening dollar across major currencies. Overall, precious metals continued to remain under pressure due to the escalating trade war tensions between the US and China.

Base metals were under pressure with half of complex ending lower amid pressure from re-emergence of trade tensions between US and China in addition to a seasonal summer slowdown.

Crude prices rallied after domestic industry report from Genpac, which showed that domestic inventories will fall soon after surprise rise in latest week.

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

MCX Gold: MCX Gold (Aug) will be trading in a range for the session having support at Rs.29400 whereas resistance is at Rs.29650. Price sustained break on either side will give further trend direction.

Gold (SPOT): Spot Gold has support at $ 1200 whereas resistance is at $ 1220.

MCX Silver: MCX Silver has resistance at Rs.38100 whereas supports are placed at Rs.37880 – 37800 levels. Sideways consolidation within the given range will be seen.

Silver (SPOT): Spot Silver will face stiff resistance at $ 15.55 whereas support remains at Rs.15.15 – 15.00 levels.

MCX Copper: MCX Copper(Aug) will remain under pressure as long as Rs.419.50 – 422 is capped as strong short-term resistance. Supports are at Rs.410 – 407. Pullback towards Rs.417 – 418 zone will be a good selling opportunity.

MCX Nickel: MCX Nickel(AUG) looks weak as long as Rs.915 is capped as resistance. Supports are at Rs.890 – 880 area. Selling is advised for the day.

MCX Crude Oil: Recent high Rs.4765 will act as stiff resistance for MCX Crude Oil whereas supports are at Rs.4690 – 4660 levels. Price sustained break above resistance will confirm positive move towards Rs.4810 – 4850. Buying above resistance is advised.

MCX Natural Gas: MCX Natural Gas remains supported above Rs.188 – 187. Resistance is at Rs.196 – 198. Buying around Rs.191 – 190 zone is advised.

MCX Lead: MCX Lead(Aug) will be trading in a range of Rs.144 – 147 zone. Price break below support will signify further weakness towards Rs.142.35 – 141 levels.

MCX Zinc: Initial upside could be seen in MCX Zinc(Aug) as long as Rs.177.35 is held as support. However, upside too will be capped around Rs.180 – 180.70 which will act as key resistance. Buying is advised as long as price holds above support.

MCX Aluminium: MCX Aluminum(Aug) looks weak as long as Rs.140.35 is capped as resistance. Supports are placed at Rs.138 – 137 levels. Selling is advised for the day.