Commodity prices traded higher on Monday with most of the non-agro commodities extended gains in the start of the week. Crude oil prices traded higher, reversing the previous losses while base metals resumed upside along with positive equity indices. Bullion prices continued to shine on stimulus hopes and the weaker dollar. The dollar index was trading under pressure near the 92 mark for the day. Here is a look at how different commodities are behaving in today’s market.
Bullion prices traded higher on Monday morning trade with confirmed victory of democrat candidate Joe Biden. COMEX spot gold prices traded above $1,960 per ounce, while spot silver prices at COMEX were trading nearly 1% up to $25.85. The victory of the democrat has raised hopes for economic stimulus and the corona aid package. The higher government spending will eventually pressure the dollar and will lower buying cost for precious metals. Bullion prices are expected to trade higher for the day on weaker dollar and economic uncertainty over growing virus cases.
MCX Gold December
- Resistance for the day lies at Rs 52,800 per 10 gram
- Support at Rs 52,200 per 10 grams
MCX Silver December
- Support lies at Rs 65,000 per KG
- Resistance at Rs. 69000 per KG
Outlook: Crude Oil
Crude oil prices traded higher with benchmark WTI crude oil prices rising by 2.50% to $38 per barrel. Crude oil prices pared previous losses after Joe Biden won the US Presidential race which eased the fuel demand worries in hopes of a stimulus package. The US President-elect Biden and his team are working on tackling the worsening health crisis. We expect crude oil prices to trade higher for the day on positive global cues.
MCX Crude Oil November
- Buy on dips with support at Rs 2,760 per barrel
- Resistance at Rs 2,890 per barrel
Outlook: Base Metals
Base metals prices traded strong on Monday on demand growth prospects on corona package hopes with the win of Joe Biden as US President. The strong equity indices and weaker dollar supported base metals to trade higher for the day. Nickel and Zinc prices led the gains in base metals in the morning trade followed by copper. Base metals may keep firm trading for the day on risk on sentiments and weaker dollar.
MCX Copper November
- Support lies at Rs 535
- Resistance at Rs. 541
MCX Nickel November
- Price support lies at Rs 1,150
- Resistance at Rs 1,195
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