Gold and Silver Updates

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By Tapan Patel


Commodity costs traded optimistic on Monday with bullion and base metals costs traded optimistic in absence of US markets supported by delicate greenback index. The greenback index ended marginally down for the day, offering assist to the commodity costs. Here’s a take a look at how totally different commodities are behaving in at present’s market.

Outlook: Bullion

Bullion costs traded greater with spot gold costs at COMEX was buying and selling close to $1,840 per ounce paring some earlier loses whereas spot silver costs at COMEX was buying and selling with over 1% beneficial properties at $25.24 per ounce within the morning commerce. Bullion costs traded greater on stimulus hopes from Biden administration forward of US Treasury secretary Janet Yellen’s testimony. The pandemic issues with rising instances of latest virus pressure within the UK and France could hold danger premium up in treasured metals. We count on bullion costs to commerce sideways to up for the day.

Buying and selling Technique:

MCX Gold February resistance for the day lies at Rs. 49,200 per 10 grams with assist at Rs. 48,600 per 10 grams.

MCX Silver March assist lies at Rs. 63,500 per KG, resistance at Rs. 67,000 per KG.

Outlook: Crude Oil

Crude oil costs traded combined with benchmark NYMEX WTI crude oil costs have been hovering above $52 per barrel conserving the slim buying and selling vary. Crude oil costs are in search of contemporary triggers on combined fundamentals over demand worries and decrease provides. Crude oil costs could get some assist on expectations of additional stimulus measures from US administration. Crude oil costs are anticipated to commerce sideways to up for the day on broad shopping for in commodities.

Buying and selling Technique:

MCX Crude Oil February assist lies at Rs. 3,780 per barrel with resistance at Rs. 3,890 per barrel.

Outlook: Base Metals

Base metals traded agency on Tuesday with Zinc and Copper costs have been buying and selling with modest beneficial properties whereas Nickel costs stored to flat buying and selling vary within the morning commerce. Base metals traded up on greenback decline and expectations of upper stimulus from US to assist financial restoration. The current spherical of optimistic financial knowledge from US and China have supported base metals to search out assist. We count on base metals to commerce sideways to up for the day.

Buying and selling Technique:

MCX Copper January assist lies at Rs. 605 and resistance at Rs. 612.

MCX Zinc January assist lies at Rs. 212, resistance at Rs. 218.

MCX Nickel January assist lies at Rs. 1,290 with resistance at Rs. 1,350.

(Tapan Patel is a Senior Analyst (Commodities) at HDFC Securities)

By Ravindra Rao


MCX Gold February futures witnessed rebound after testing the decrease band of the consolidation vary of Rs 48,600-49,600. In the meantime value is buying and selling beneath the 5 day EMA (49,100) and 21 day EMA (49,680), which could possibly be the important thing resistance zone for the day. On the draw back Rs 48,450 holds key assist as 200 day EMA and 78.6% Fibonacci retracement coincides. Solely a failure to carry the assist would drag the costs additional down in direction of Rs 48,050. On the momentum entrance RSI is buying and selling beneath 50 (40) suggesting sideways transfer. Value anticipated to maneuver within the band of Rs 48,600-49,450 with sideways development.

Technique:

Purchase MCX Gold Feb at Rs 48,700 with a goal of Rs 49,400 and a cease loss at Rs 48,400.

MCX Silver March continued to maneuver in a sideways vary of Rs 64,100-66,700 since the previous few classes. In the meantime value is buying and selling beneath the 21 day EMA (66,600), which could possibly be the important thing resistance for the day. Equally on the draw back key assist holds round Rs 64,100, adopted by Rs 63,140 (61.8% Fibonacci degree). On the momentum entrance RSI is hovering close to 44 suggesting sideways to weaker development. For the day value is anticipated to maneuver within the band of Rs 64,100-66,700 with a sideways bias. Nevertheless shut above Rs 66,700 would set off extra shopping for.

Technique:

Purchase MCX Silver Mar at Rs 65,000 with a goal of Rs 66,500 and a cease loss at Rs 64,100.

(Ravindra Rao is VP-Head Commodity Analysis at Kotak Securities)



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