Base metals complex traded higher with most of the metals rose on demand growth optimism - HDFC Securities
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BULLION
Bullion prices traded steady with spot gold prices at COMEX were trading near $1710 per ounce while spot silver prices at COMEX were trading marginal down near $24.33 per ounce in the morning trade. The precious metals witnessed sharp rebound from the key support levels recovering from the bear territory. Bullion prices got support from ease in US bond yields and decline in dollar index after US President unveiled multi trillion dollar infrastructure investment plan.
We expect bullion prices to trade sideways to down for the day on mixed global cues with dollar resuming rally in the morning trade against peer currencies. MCX Gold June resistance for the day lies at Rs. 45200 per 10 grams with support at Rs. 44600 per 10 grams. MCX Silver May support lies at Rs. 62500 per KG, resistance at Rs. 65000 per KG.
ENERGY
Crude oil prices traded firm with benchmark NYMEX WTI crude oil prices were trading marginal up at $59.31 per barrel in the morning trade. Crude oil prices traded under pressure in previous trade on demand outlook worries after OPEC plus nations lowered oil demand forecast for the year 2021. The traders and investors weighed demand prospects against bullish weekly inventory data. The lockdown amid third wave of virus cases in Europe and rising cases in India and Brazil has capped upside in oil prices.
We expect crude oil prices to trade sideways to down for the day. MCX Crude Oil April support lies at Rs. 4340 per barrel with resistance at Rs. 4460 per barrel.
BASE METALS
Base metals complex traded higher with most of the metals rose on demand growth optimism. Base metals prices were supported by stronger demand expectations from china ahead of seasonal demand and US infrastructure push. US President Joe Biden's $2 trillion plan to create more affordable housing, rebuild roads, bridges and railways and provide incentives for electric vehicles, unveiled on Wednesday may create strong road map for base metals.
Base metals are expected to trade sideways to up for the day on positive global cues. MCX Copper April support lies at Rs. 663 and resistance at Rs. 672. MCX Zinc April support lies at Rs. 217, resistance at Rs. 223. MCX Nickel April support lies at Rs. 1160 with resistance at Rs. 1210
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