Base metals prices traded firm on Tuesday with most of the metals witnessed recovery from recent lows - HDFC Securities
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GLOBAL MARKET ROUND UP
Commodity prices traded higher with most of the commodities in Non-Agro segment witnessed recovery from recent lows. Bullion prices rebounded after previous week’s selling while base metals kept firm trading range on weaker dollar. Crude oil prices surged with more than 2% gains on delayed Iran nuclear talks. The dollar index fell by 0.35% to 91.90 for the day
US stock-market benchmarks recorded significant gains Monday, with the Dow Jones Industrial Average seeing its best day since early March, as investors focused on a strengthening economy after the Federal Reserve last week signaled it may raise rates sooner than previously expected.
Asian stocks opened mostly higher Tuesday, tracking a U.S. equity rebound as the prospect of very gradual policy tightening tempers some of the concerns about the Federal Reserve’s hawkish tilt.
BULLION
Bullion prices traded firm on Tuesday with spot gold prices at COMEX were trading up near $1787 per ounce while spot silver prices at COMEX were trading flat at $25.96 per ounce in the morning trade. Bullion prices edged higher supported by weaker dollar and plunge in US bond yields. The 10 year US Treasury yields fell to 1.43% boosting buying in gold. The traders are awaiting US FED Chairman’s testimony after FED signalled rate hike in 2023.
We expect bullion prices to trade sideways to up for the day. MCX Gold Aug resistance for the day lies at Rs. 47100 per 10 grams with support at Rs. 46600 per 10 grams. MCX Silver July support lies at Rs. 66500 per KG, resistance at Rs. 69800 per KG.
ENERGY
Crude oil prices traded steady on Tuesday with benchmark NYMEX WTI crude oil prices were trading 0.07% up at $73.17 per barrel in the morning trade. Crude oil prices rallied above $73 per barrel supported by weaker dollar and possible delay on Iran nuclear talks. The negotiations to revive the Iran nuclear deal took a pause on Sunday after hard-line judge Ebrahim Raisi won Iran’s presidential election. Iranian President-elect Ebrahim Raisi on Monday backed talks between Iran and six world powers to revive a 2015 nuclear deal but flatly rejected meeting U.S. President Joe Biden, even if Washington removed all sanctions.
We expect crude oil prices to trade sideways to up for the day. MCX Crude Oil July support lies at Rs. 5380 per barrel with resistance at Rs. 5490 per barrel.
BASE METALS
Base metals prices traded firm on Tuesday with most of the metals witnessed recovery from recent lows.
Base metals traded higher on dollar decline and surge in equity indices boosting demand outlook with global economic recovery. Nickel prices were trading with more than 1% gains in the morning trade. Copper prices halted decline on bargain buying on positive outlook.
Base metals are expected to trade sideways to up for the day. MCX Copper June support lies at Rs. 692 and resistance at Rs. 705. MCX Zinc June support lies at Rs. 232, resistance at Rs. 240. MCX Nickel June support lies at Rs. 1280 with resistance at Rs. 1340.
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