Gold prices traded higher in Monday’s morning trade as a sustained rise in novel coronavirus cases around the world intensified fears about a delay in global economic recovery and prompted investors to seek the safe-haven metal. On the other hand, crude oil was down over 2 per cent in the international market.
Here is how SMC Global expects commodities to fare today:
Spices: Turmeric futures (July) are likely to travel on a bullish path towards Rs 5,900-5,950 levels. Cardamom futures (July) are expected to plunge further towards Rs 1,300 levels. The emerging situation across the upcountry markets has impacted the demand as well as the purchasing capacity of consumers. From the level of Rs 3,300 per kg before the lockdown in March, the average price in the auctions now has dropped to Rs 1,150 per kg.
Oilseeds: Soybean futures (July) are likely to trade sideways in the range of Rs 3,710-3,770 levels. Soy oil futures (July) are expected to remain stable in the range of Rs 810-820 and CPO futures (July) may consolidate in the range of Rs 700-720 levels. Demand for these edible oils, substitute of each other are in a tug-of-war as the spread between soybean oil and palm oil prices in the domestic as well as in the international market are narrowing since June. In other words, demand may shift from soy oil to palm oil, as the previous is gaining slower than the later.
Gold and silver: Bullion counter may extend its gains. Gold may test Rs 48,380 and taking support near Rs 47,600 while silver may test Rs 49,000 and may take support near Rs 47,780.
Base Metals: Base metals may trade with sideways to bullish bias. Copper can move towards Rs 462 while taking support near Rs 453. Base metals traded mixed on the morning of Monday in SHFE as the market returned from the three-day Dragon Boat Festival holiday. Zinc may move towards Rs 168 and taking support near Rs 162. Lead can move towards Rs 147 while taking support near Rs 140.60.Nickel may trade with bullish bias where it may test Rs 995 and taking support near Rs 958. Aluminum may move towards Rs 138 while taking support near Rs 134.80.
Energy: Crude oil may post correction where it may test Rs 2,810 and facing resistance near Rs 3,060. Natural gas may bounce towards resistance and test RS 123 and take support near Rs 115.
Other commodities: Cotton futures (July) may continue to trade lower for the fourth consecutive week and slide down towards Rs 15,700-15,600 levels, taking negative cues from the international market and the fact that this season the farmers are lured to grow more of this fibre crop, diverting from other labour intensive crops. Chana futures (July) are likely to trade higher towards Rs 4,320-4,350 levels. The sentiments are in upbeat mood owing to higher procurement operations being carried out under a government scheme in Andhra Pradesh, Karnataka, Rajasthan, Telangana, Maharashtra, Madhya Pradesh, Uttar Pradesh, Gujarat and Haryana. Guargum futures (July) may continue to face resistance near Rs 5,540 and possibly a correction can be seen till Rs 5,400-5,350 levels.