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Commodity outlook: Gold, silver may move sideways; cotton, jeera may plunge

NEW DELHI: Gold, silver and crude oil were trading with tepid gains in futures trade on Wednesday, tracking firm global cues.

Oil prices rose in global markets as Opec said it had cut supply deeply in January and as the US sanctions hit Venezuela’s oil exports, Reuters reported.

Dollar’s weakness against its global peers gave a leg up to gold prices.

The MCX Gold was trading at Rs 32,875 per 10 grams, up by Rs 24, while MCX Silver was trading at Rs 39,580 a kilo, up by Rs 77 around 11:15 am. The MCX Crude oil was trading at Rs 3,785 per barrel, up Rs 3 at that time.

Here are the projections on various commodities by the brokerage SMC Global securities:

Bullion: The bullion counter may move sideways as gold prices held firm in global markets. MCX Gold can face resistance near Rs 33,100 while it has support near Rs 32,750. Silver can witness lower level buying and it can test Rs 39,800, taking support near Rs 39,500.

Base metals:
Base metal prices may witness some lower level buying. MCX Copper may test Rs 440 while taking support near Rs 430. Zinc can move in the range of Rs 182-186. Lead can move sideways in the range of Rs 142-145. Nickel can take support near Rs 860 and recover towards Rs 885. Aluminium prices may find some support near Rs 129.

Energy: MCX Crude oil can test Rs 3,850 while taking support near Rs 3,740. Natural gas may remain subdued and it can test Rs 185 in MCX.

Spices: Turmeric futures (April) is expected to take support near Rs 6,280 and may witness short covering, taking positive cues from the spot markets. Jeera futures (March) is expected to rally towards Rs 15,700-15,800 levels, taking support near Rs 15,540. Coriander futures (April) is expected to plunge towards Rs 6,000-5,900 levels.

Oilseeds: The short covering in soybean futures (March) may face resistance near Rs 3,790. Mustard futures (April) is expected to trade with an upside bias taking support near Rs 3,900 level. Soy oil futures (March) is expected to trade with a negative bias and may remain below Rs 763. The short covering in CPO futures (February) may remain restricted to Rs 564.

Other commodities: Cotton futures (February) is likely to plunge further towards Rs 20,100-20,000 levels. Guar seed futures (March) may face resistance near Rs 4,270-4,300 levels, while guar gum futures (March) is expected to remain below Rs 8,450-8,500 levels. Chana futures (March) is expected to take support near Rs 4,165 level. The counter is trading higher at major markets in the country following firm cues from fresh physical trade activity at lower rates.