Bullion prices kept the firm trading range with COMEX spot golf prices traded near $1960 on Wednesday while spot silver prices at COMEX were trading half a percent up near $27.30 in the morning trade.
Bullion prices fluctuated on WTO ruling over US tariffs on China and speculation over US FOMC meeting. Gold was trading near a two-week high and the dollar at a two-week low when the WTO deemed that the Trump administration’s tariffs on $200 billion worth of Chinese goods were illegal.
We expect gold prices to trade up with support at $1930 and resistance at $2000. MCX Gold October support at Rs. 51400, resistance lies at Rs. 52200/52500. MCX Silver December has important resistance at Rs. 70500.
Crude oil prices traded higher with benchmark WTI crude oil rallied by more than 2% on Tues day while prices were trading 1.5% up to $39 on Wednesday morning. Natural gas prices traded 2% higher on supply disruption fears in line with crude oil prices.
Crude oil prices rose on bullish weekly inventory report from API and production shut due to Hurricane Sally. The API report showed 9.51 mb of drawdown in its weekly inventory report. Prices got additional support as more than 25% of offshore oil and gas production is shut in Gulf of Mexico.
We expect oil prices to trade sideways to up for the day with MCX Crude oil September futures has support at Rs. 2780 with resistance at Rs.2950.
Base metals traded mixed on Tuesday with most of the metals kept the range bound trading with positive bias. Zinc prices led the gains rallying 1% for the day while copper prices ended flat.
Base metals reported mixed trading with the World Trade Organization ruling that the U.S. Violated international regulations by imposing tariffs on more than $234 billion of Chinese exports. Copper prices may keep positive trade on China demand recovery.
We expect base metals to trade sideways to up with MCX Copper support at Rs. 524, resistance at Rs. 532/535. MCX Nickel resistance lies at Rs. 1140.
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