Commodity outlook: Gold likely to face resistance at $1,217-1,222 levels

NEW DELHI Gold prices edged higher after data showed that US job growth slowed more than expected in July, but labour market conditions continued to tighten.

Overall precious metals continued to remain vulnerable to stronger dollar this week, as expectations for additional US interest rate hikes this year underpin demand for the greenback.

Base metals witnessed some pullback on Friday after PBOC raised margins for forwards contracts to 20 per cent. This led to some bouncing the Yuan, with base metals following the same.

Crude prices traded positive in early morning session on Monday after Saudi crude production registered a surprising dip in July and plateauing of American shale drilling activities.

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

MCX Gold: MCX Gold (Aug) looks to trade in a higher range for the session. Support is at Rs.29500 -29470 whereas resistance is at Rs.29800 – 29880 area.

Gold (SPOT): Spot Gold has strong support at $ 1200 whereas resistance is at $ 1217 – 1222 levels.

MCX Silver: MCX Silver will be trading in a range for the session having support at Rs.37880 – 37800 whereas resistance is at Rs.38100 – 38150 area. Price sustained break on either side will give further trend direction.

Silver (SPOT): Spot Silver has immediate supports at $ 15.10 whereas stiff resistance is at $ 15.55 – 15.65 area.

MCX Copper: MCX Copper(Aug) has strong supports at Rs.413 – 412.25 whereas resistance is at Rs.418 – 422 levels. Pullback towards resistance area looks possible as long as price holds above support.

MCX Nickel: MCX Nickel(AUG) has strong supports at Rs.905 – 988 area whereas resistance is at Rs.922.50 – 935 levels. Short-covering looks possible as long as price holds above support.

MCX Crude Oil: MCX Crude Oil is likely to continue its positive move as long as Rs.4735 – 4700 is held as support. Resistance is at Rs.4830 – 4850. Dip buying around Rs.4750 is advised.

MCX Natural Gas: MCX Natural Gas will trade with positive bias and initial dip towards Rs.194 – 192.50 zone is good buying opportunity. The counter is likely to target Rs.198 – 200 area.

MCX Lead: MCX Lead has broken its consolidative range and price sustained trade below Rs.145.70 is confirming further weakness for the session. Support is at Rs.142 – 140.85. Selling is advised.

MCX Zinc: MCX Zinc will be trading in a range of Rs.176.70 – 181 in short-term. Price sustained break on either side of the given range will give further trend confirmation.

MCX Aluminium: MCX Aluminum looks weak below Rs.140.70. Supports are placed at Rs.137.85 – 137 levels. Selling is advised as long as price holds below resistance.