Commodity Strategies – Gold, Silver, Raw, Base Metals

Tapan Patel

Commodity prices plunged on Monday with a greenback, the first decline, and metals fell on weak Chinese and US data. Crude oil prices have declined in response to growing concerns about the virus. Finish the dollar index 0.12% per day. See how different products work in the market today.

View: Bulion
Bulls’ prices rose steadily on Tuesday against COMEX, with gold at $ 1,786 a month, and silver at COMEX trading at a low of $ 23.86 on morning trading. Precious metals have been found to be the lowest in the world due to their disappointing economic data and rapid worrying about delta alternatives. The fall in the US bond provides a 1.25% support for the day. We expect bull prices to sell side by side in mixed global clues.

Marketing strategy;

For the day’s golden October resistance, there are 10 grams, 47,500, 10 grams, 46 grams, 900 support and 10 grams. MCX Silver September support is 62,500 Rebels per kg, 65,000 Rebels per kg.

View – Raw oil
Crude oil prices traded steadily with the NYMEX WTI crude oil trade near $ 67.08 a barrel in the morning trade. Crude Oil Prices OPEC and countries have traded as expected, not expected to increase. We expect crude oil prices to go down day by day.

Marketing strategy; August support for MCX crude oil at 4,920 rubles per barrel with 5,070 barrels.

View: Base Metals
On Tuesday, most metals were traded in the green, and basic metals were traded. Aluminum buys more than half of China’s low supply concerns. Zinc and copper prices have been sold at possible port interruptions in China, as virus restrictions could limit supply. After verifying three cases of coronavirus, China stopped working at the port of Alashanko in Shinjiang. Since the port is the main entry point for those supplies, the temporary shutdown has since affected imports from Kazakhstan and Russia to zinc and lead storage. Basic metals can be traded side by side during the day.

Marketing strategy; MCX Copper August support is available at 720 rubles and 734 rubles. MCX Zinc August support at 248 rubles, 254 rubles.

(Tapan Patel Senior Analyst – Commodities – HDFC guarantees. Views are their own)

Ravindra Rao
Futures of MCX Gold have reversed the current trend of 47,300 rubles to 61.8% Fibonacci recovery, indicating a recovery in gold prices. In this case, the 200-day EMA (47,600 rubles) could serve as a key resistance zone, which could limit the march. The cost must remain above 200-DEMA to grow back into a 47,800-48,000 zone. On the plus side, it provides 46,800 rubles (8-day EMA) emergency support, followed by 46,400 rubles. Meanwhile, recovery in RSI has strengthened recovery. However, the RSI is still hovering below 50 (49), which should move above 50 for a series of movements. Therefore, based on the above evidence, the price is expected to be biased between 46,800-47,600 rubles. Closing just under 46,800 rubles will only weaken the recovery.

Shopping range: 46,800-47,600 rubles

MCX Silver is currently trying to adjust its 8-day EMA to 63,900 rubles after recovering from last week’s low of 61,500 rubles. If the price exceeds 63,900 rubles, the next resistance will move to 65,200 rubles (20-day EMA). Holds key support for 62,400 rubles a day, then 61,500 rubles. An action of less than 61,500 rubles extends the weakness to 60,400-60,000 rubles. Meanwhile, the rebound in the over-sold zone is supported by a reversal in the RSI (35). However, it is still below 50, which could hurt the bulls. So the price is expected to be in the range of 62,400-63,900 rubles per day, minutes before the speech of the chairman of the US Federation and the FOMC meeting.

Shopping range: 62,400-63,900 rubles

(Views of Ravindra Rao, CMT, EPAT, VP-Head Commodity Research at Kotak Securities Ltd.)


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