Commodity prices traded higher witnessing rebound across non-agri segment on weaker dollar. Bullion prices rose on Monday ahead of US Presidential elections and worries over surge in virus cases. Crude oil futures pared previous losses while base metals gained on demand growth prospects from China. The dollar NSE 0.37 % index ended marginally down which supported commodity prices along with strong equity indices. Here is a look at how different commodities are behaving in today’s market.
Bullion prices traded off highs made in the previous session as traders and investors are weighing US Presidential elections results. COMEX spot gold prices traded near $1,892 per ounce while spot silver prices at COMEX traded near $24 in the morning trade. Bullion prices may continue to trade in current range as US presidential election is entering into its final phase. The uncertainty regarding outcome of the elections may keep prices volatile for the day.
Trading Strategy
MCX Gold
- Resistance for the day lies at Rs 51,100 per 10 grams
- Support at Rs. 50600 per 10 grams
MCX Silver
- Support lies at Rs 60,800 per KG
- Resistance at Rs. 63000 per KG
Outlook: Crude Oil
Crude oil prices traded higher on Monday with WTI crude oil prices witnessing a sharp rebound gaining nearly 3 per cent per barrel. Crude oil prices traded firm on expectations that OPEC plus nations may delay the plan to restore some of oil output in January 2021. Crude oil prices also got support from positive equity indices and weaker dollar. We expect crude oil prices to trade sideways to down for the day on broad weak fundamentals.
Trading Strategy:
Sell on rise in MCX Crude Oil November.
- Support at Rs 2,610 per barrel
- Resistance at Rs 2,830 per barrel
Outlook: Base Metals
Base metals prices traded positive, except for aluminium, on demand growth prospects from China. China unveiled a new development plan with energy vehicle sales to account for about 20 per cent of the total new car sales by 2025. Copper and Nickel prices may trade positive on higher consumption scenario. Base metals may keep positive trading for the day on weaker dollar and strong equity indices.
Trading Strategy
MCX Copper
- Support lies at Rs 524
- Resistance at Rs 532
MCX Nickel
- Support lies at Rs 1,130
- Resistance at Rs 1,160