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Commodity outlook: How will bullion, oil, base metals trade today – Economic Times

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The domestic equity market traded higher in Thursday’s session following firm cues from global markets amid hopes of a thaw in US-China trade war. In the commodity mart, crude oil is likely to witness short-covering, while gold could trade with a negative bias.

Bullion: Bullion counter may trade with a weak bias as gold prices fell on Thursday after equities gained on improved risk sentiment, buoyed by signs of gradual de-escalation in US-China trade tensions, while investors eyed European Central Bank’s meeting for cues on monetary policy easing.

Gold (Oct) can dip lower towards Rs 37,600 while taking resistance near Rs 38,200, while silver (Dec) can dip towards Rs 47,000 while taking resistance near Rs 47,700.

Base Metals: Base metals may trade with an upside bias. Copper may test Rs 456 while taking support near Rs 450. Zinc may increase towards Rs 192 while taking support near Rs 184. Lead may trade sideways testing Rs 158 while taking support near Rs 152. Nickel may move upwards to Rs 1,290 while taking support near Rs 1250. Aluminum may test Rs 142 while taking support near Rs 139.

Energy: Crude oil may witness some short covering after yesterday’s fall. Oil prices jumped on Thursday, bouncing back from heavy losses in the previous session, buoyed by moves to ease trade tensions between Washington and Beijing and a drop in US crude inventories to the lowest in nearly a year.

Crude oil may test Rs 4,050 while taking support near Rs 3,980. Natural gas can dip lower testing Rs 180 while taking resistance near Rs 185.

Spices: Turmeric futures (Oct) may witness sell on rise, facing resistance near Rs 6,720 & would probably break the support near Rs 6,600. Jeera futures (Oct) are expected to trade sideways & test Rs 16,900. Dhaniya futures (Oct) will probably take support near Rs 6,000 & remain steady. Cardamom futures (Oct) may trade with an upside bias taking support near Rs 2,715.

Oilseeds: Soybean futures (Oct) may trade higher & test Rs 3,750-3,780. Soy oil futures (Oct) are expected to trade higher towards Rs 760-762, tracking higher price of edible oil in the overseas market. While CPO futures (Sept) may consolidate in the range of Rs 555-560.

Other Commodities: Cotton futures (Oct) are expected to trade higher & test Rs 19,600-19,650 on the higher side, taking support near Rs 19,460. Chana futures (Oct) will probably face resistance near Rs 4,100 & witness selling pressure with every short covering. Castor seed futures (Oct) are expected to hold on to the support near Rs 5,775 on the back of a smaller crop from last year and the fact that arrival of the new crop is at least six months away.