Base Metals

Commodity outlook: Gold, crude setup bearish, sell copper on rise

Gold continued to remain under pressure following strength in the dollar against its major crosses. The US Federal Reserve kept interest rates unchanged as expected, but characterised that the economy is growing at a steady pace, keeping the central bank on track to increase borrowing costs in September.

Base metals cracked hard on fears of slower demand due to renewed US-China trade tensions and worries about slowing growth in China.

Crude prices traded positive in early morning session after trading lower for second consecutive week on surprise rise in US crude inventories rose 3.8 million barrels against expectations for decline of 2.8 million barrels.

Here’s a lowdown on the outlook of different commodities by brokerage Motilal OswalNSE 2.17 % Securities:

MCX Gold: MCX Gold (Aug) has immediate resistance is at Rs.29825 whereas critical resistance is at Rs.29965. Selling near immediate resistance is advised targeting Rs.29580 - 29460 levels.

Gold (SPOT):
Spot Gold will face stiff resistance at Rs.1225 - 1230 zone and bias looks weak as long as price holds below the same. Supports are at Rs.1205 - 1200.

MCX Silver: MCX Silver has resistance at Rs.38265 - 38425 whereas supports are placed at Rs.37880 37800 levels. Selling on rise near resistance is advised for the day.

Silver (SPOT): Spot Silver will face stiff resistance at $15.60 whereas supports are at Rs.15.15 - 15.00 levels.

MCX Copper: MCX Copper(Aug) is likely to remain under pressure as long as Rs.419 -  422 is capped as strong short-term resistance. Supports are at Rs.410 - 407. Pullback towards Rs.416.50 - 418 zone will be a good selling opportunity.

MCX Nickel: MCX Nickel(AUG) has immediate key supports at Rs.910 - 905 whereas resistance is at Rs.922 - 930 levels. Sideways consolidation within the given range will be seen for the session.

MCX Crude OilNSE 0.54 %: MCX Crude Oil has resistance at Rs.4645 - 4685 area whereas supports are at Rs.4570 - 4540 levels. Bias remains weak and selling on rise is advised for the day.

MCX Natural Gas: MCX Natural Gas remains supported above Rs.188 - 187. Resistance is at Rs.191.70 - 193.50. Buying is advised.

MCX Lead: Bias for MCX Lead(Aug) remains weak as long as Rs.150 - 151 is capped as key resistance zone. Supports are at Rs.146 - 145 area. Selling on rise around Rs.149 is advised.

MCX Zinc: Bias remains weak for MCX Zinc(Aug) as long as Rs.180.35 - 181.70 is capped as short-term resistance. Supports are placed at Rs.176.70 - 175. Selling on rise around Rs.179.25 is advised for the day.

MCX Aluminium: MCX Aluminum (Aug) will be trading in a range having support at Rs.139.70 whereas resistance is at Rs.142.50.