Commodity outlook: How will bullion, crude, base metals trade today

Domestic markets advanced in Wednesday’s trading session following firm cues from global peers. In the commodity mart, crude oil may trade with a positive bias, while gold may trade with a negative bias. Here’s a jump through the projections on various commodities by SMC Global Securities.

Bullions: Gold prices hovered near a four-week low hit in the previous session as risk appetite improved amid hopes of an interest rate cut by the European Central Bank and fiscal stimulus measures from Germany, Europe’s largest economy.

Bullion counter may trade with a weak bias. Gold (Oct) can dip lower towards Rs 38,000 while taking resistance near Rs 38,500, while silver (Dec) can dip towards Rs 47,200 while taking resistance near Rs 48,000.

Base metals: Base metals may dip on profit booking. Copper may test Rs 448 while it faces resistance near Rs 456. Zinc can increase towards Rs 190 while taking support near Rs 185. Lead may trade with a sideways bias testing Rs 157, while taking support near Rs 152. Nickel may move upwards to Rs 1,290 while taking support near Rs 1,250. Aluminum may test Rs 142 while taking support near Rs 139.

Energy: Crude oil may trade with upside bias as oil prices rose on Wednesday after an industry report showed that crude stockpiles in the US fell last week by more than twice the amount that analysts had forecast.

Crude oil may test Rs 4,200 while taking support near Rs 4,140. Natural gas can move higher, testing Rs 188 while taking support near Rs 183.

Spices: Turmeric futures (Oct) may witness sell on rise, facing resistance near Rs 6,795. Jeera futures (Oct) are expected to trade sideways in the range of Rs 17,130-17,230. Dhaniya futures (Oct) will probably take support near Rs 6,100 & remain steady. Cardamom futures (Oct) may trade with upside bias taking support near Rs 2,690.

Oilseeds: Soybean futures (Oct) may face resistance near Rs 3,580. Soy oil futures (Oct) are expected to see more downside near Rs 745, while CPO futures (Sept) may consolidate in the range of Rs 553-558.

Other commodities:
Cotton futures (Oct) are expected to consolidate in the broader range of Rs 19,380-19,475. Chana futures (Oct) will probably face resistance near Rs 4,100 & witness selling pressure with every short covering. The outlook of castor seed futures (Oct) is expected to hold on to the support near Rs 5,800 on the back of a smaller crop from last year and the fact that the arrival of the new crop is at least six months away.