Bullion prices witnessed sell off on Monday with COMEX spot gold prices fell by more than 2% while spot silver prices at COMEX plunged by 9% fort the day.
Bullion prices declined on sharp dollar recovery as safe haven buying switched to dollar with rising virus cases and fear of another lockdown in Europe and UK. Gold prices are down nearly 10% from an all-time high hit in early August as hopes of further stimulus dwindled.
We expect gold prices to trade sideways to down with support at $1880 and resistance at $1930. MCX Gold October support at Rs. 49800, resistance lies at Rs. 51200. MCX Silver has important support at Rs. 60000 and resistance at Rs. 63500.
Crude oil prices traded lower with benchmark WTI crude oil fell by 4% to below $40 levels for the day. Natural gas prices plunged by more than 9% on weaker demand in spot market over cooler temperatures.
Crude oil prices declined in addition to weak global cues on lift of oil blockade in Libya which has retuned Libyan output back to the market. Workers at Libya's major Sharara field have restarted operations after National Oil Corporation announced a partial lifting of force majeure.
We expect oil prices to trade sideways to down for the day with support at $37 and resistance at $42. MCX Crude oil October futures has support at Rs. 2850 with resistance at Rs.2990.
Base metals prices traded lower witnessing selling across board on Monday with Nickel, Zinc and Copper declined the most.
Base metals traded under pressure on stronger dollar against major currencies and sell off in equity segment over fear of second wave of virus infections in Europe and UK. The UK has announced lockdown for 21 days raising fear of lockdown measures in other parts of the world.
We expect base metals to trade sideways to down with MCX copper resistance at Rs. 530 and support at Rs. 520. MCX Nickel support lies at Rs. 1045 and resistance at Rs. 1090.
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