Gold futures may trade sideways to down
New Delhi-India (Mar 13) Gold prices are higher on some cooling in the dollar index but are still headed for a sixth weekly loss in the past seven weeks on expectations of a Fed rate hike.
Base metals are mostly higher after recent losses as a weaker dollar is underpinning prices. Lead is trading weak as stock jumped net 16,100 tonnes to 228,700, an increase of 7.6%.
WTI Oil prices are lower after an IEA report today stated that US Oil inventories may soon test storage capacity limits, which would lead to renewed price weakness.
MCX Gold continued its southwards journey closing negatively at Rs.25655. Initially pullbacks could be seen after a steep fall, but upside looks limited till Rs.25850 - 25930 which are key resistance levels. Major resistance is at Rs.26100 whereas supports are placed at Rs.25590-25515-25380-25170 levels. As long as major resistance are capped on upside, short term bias remains sideways to down.
Spot Gold pulled back earlier in the day but failed to break resistance at $1168. Immediate support is at $1148 and only sustained break below could target towards $1140-1136- 1124. Failure to breach $1148 could lead to a sharp pullback / short covering towards $1168 / 1174.
NCDEX Gold Hedge looks to trade sideways negative for the day. The counter could test Rs.23000 -22850.
MCX Silver is relatively stronger than MCX gold and has closed at Rs.35325 yesterday. Intraday resistances are at Rs.35550-35700-36050 levels whereas supports are seen at Rs.35260-35100-34950-34650 levels. Breach above 35500 would be the first sign of beginning of pullback.
Spot Silver is hovering near crucial support of $15.50 level (CMP $15.55). Sustainable trade below the same could again weaken the trend targeting $14.95 level. As long as above 15.50, expect a pullback towards $15.80 / 15.95.
MCX Copper has been consolidating in a broad range of Rs.365-375 for the past two weeks. Breach on either side breach of this range could increase the momentum. Intraday supports are placed at Rs.369 / 365 / 362 whereas Rs.374-375 / 378.5-380 could act as resistances.
MCX Nickel is trading in a broad range of 860 - 895 and either side breach could give us further direction now. Intraday supports are placed at Rs.868 / 860 whereas Rs.894 / 905 could act as resistances. Range bound movement is expected to continue for the day.
MCX Crude Oil has breached below it critical short term support of Rs.3055 and is currently trading near Rs.2960. Downside for the counter could continue for the day as long as price holds below Rs.3055 which could act as short term resistance. Supports are placed at Rs.2910-2865. Selling on rise is advisable for the session.
Source: CommodityOnLine
