Commodity prices traded positive on Thursday supported by weaker dollar as democratic candidate Joe Biden looked set to win the White House race. Bullion prices traded higher with silver rallying the most on stimulus hopes. Crude oil prices ended in the red on weak demand outlook while base metals kept trading in a range. The dollar index fell below 93-mark. losing nearly 1% for the day. Here is a look at how different commodities are behaving in today’s market.
Bullion prices traded under pressure in Friday morning, paring some of the previous session’s gains. COMEX spot gold prices traded near $1,939 per ounce while spot silver prices at COMEX were trading near $25.17 after gaining more than 6% in previous trade. Bullion prices shed some gains after the US FED kept loose monetary policy while final result of US elections were yet to come. The ETF holdings at SPDR gold shares fell to 1,252 tonnes despite of rally in prices. Bullion prices are expected to trade higher awaiting key non-farm payroll in evening session.
MCX Gold December
- Resistance for the day lies at Rs 52,200 per 10 grams
- Support at Rs 51,000 per 10 grams
MCX Silver December
- Support lies at Rs 60,800 per KG
- Resistance at Rs 63,000 per KG
Outlook: Crude Oil
Crude oil prices traded weak on Friday with benchmark WTI crude oil prices falling by more than 2% to below $38 per barrel. Crude oil prices extended decline after Europe entered in new lockdown measures to curb rising Covid-19 cases. The weaker demand concerns took a toll on oil prices with over supply market scenario. We expect crude oil prices to trade in current range with bearish bias for the day.
Trading Strategy: Sell on rise in MCX Crude Oil November
- Support at Rs 2,720 per barrel
- Resistance at Rs 2,860 per barrel
Outlook: Base Metals
Base metals prices traded weak on Friday on recovery in US dollar and demand growth concerns from Europe. Base metals prices were range-bound awaiting final outcome of US elections. Zinc prices fell from 17-month highs in LME on higher supply in China. Zinc prices at MCX were less affected and were trading marginally down in line with the overall complex. Base metals may keep sideways to down trading for the day awaiting key data from US.
MCX Copper November
- Support lies at Rs 524
- Resistance at Rs 532
MCX Nickel November
- Support lies at Rs 1,140
- Resistance at Rs 1,170
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