NEW DELHI: Gold prices slipped in futures trade on Tuesday, tracking the trend in overseas markets, while a fall in spot demand also weighed on.
The yellow metal ticked lower in global markets as the dollar held near multi-week highs on reduced expectations of an aggressive rate cut by the US Fed.
Oil prices dipped on demand concerns following the latest signs the US-China trade war is dragging on the global economy, although the potential for conflicts in the Middle East offer support, Reuters reported.
Around 12 pm, the MCX Gold traded at Rs 34,532 per 10 grams, down Rs 47, while MCX Crude oil traded Rs 3,952 per barrel, down Rs 26.
Let’s take a look at how various commodities may fare today, as projected by brokerage SMC Global Securities.
Bullion: Gold can take support near Rs 34,400, facing resistance near Rs 34,800 and silver can take support near Rs 37,800, facing resistance at Rs 38,350.
Base metals: Copper may remain sideways with a weak bias and it can test Rs 434, facing resistance near Rs 440. Zinc can test Rs 190, facing resistance near Rs 195. Lead may test Rs 150, facing a hurdle near Rs 155. Nickel may test Rs 860, facing resistance near Rs 900. Aluminium may test Rs 140, facing resistance near Rs 144.
Energy: MCX Crude oil may move towards Rs 3,900, facing resistance near Rs 4,000. Natural gas may remain on a stronger path and it can test Rs 168, taking support near Rs 164.
Spices: Turmeric futures (Aug) may continue to trade with a bearish bias and may test Rs 6,500 as it has broken the major support near Rs 6,600. “A bullish trend can be seen in jeera futures (Aug), hence lower level buying is recommended near Rs 17,300, eyeing Rs 17,600. The commodity has support near Rs 17,225,” said the brokerage. The rally in cardamom futures (Aug) may get stalled and there may be profit booking from higher levels towards Rs 2,500-2,400. Coriander futures (Aug) is likely to gain towards Rs 7,200, taking positive cues from higher export demand and low crop in the key growing areas of Rajasthan and Gujarat.
Oilseeds: Soybean futures’ August contract may face resistance near Rs 3,625, while the downside may get extended towards Rs 3,520-3,500. Mustard futures (Aug) is not being able to breach the resistance near Rs 3,980-4,000 it may weaken towards Rs 3,880-3,860. The downtrend may again emerge in CPO futures (July) towards Rs 495, while soy oil futures (Aug) may come down to test Rs 722-720, facing resistance near Rs 728.