Base metals prices traded lower on Thursday with most of the metals pared previous gains - HDFC Securities
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GLOBAL MARKET ROUND UP
Commodity prices traded mixed with most of commodities in non-agro segment kept firm trading range on Wednesday. Bullion prices traded flat on mixed global cues while base metals traded higher on strong demand prospectus. Crude oil prices traded steady factoring bullish weekly inventory data. The dollar index ended firm to 91.80 for the day.
The S&P 500 index and Dow Jones Industrial Average lost ground Wednesday after back-to-back winning sessions, but the Nasdaq Composite climbed to its 16th record close in 2021, as investors focused on inflation and last week’s more hawkish policy update from the Federal Reserve.
The IHS Markit U.S. flash manufacturing purchasing managers index rose to 62.6 in June from 62.1 in May, while the U.S. flash services PMI fell to 64.8 in June from 70.4 in the prior month.
BULLION
Bullion prices traded steady on Thursday with spot gold prices at COMEX were trading near $1776 per ounce while spot silver prices at COMEX were trading flat at $25.85 per ounce in the morning trade. Precious metals are trading flat with gold prices kept muted trading range of $20 on mixed global cues. Bullion prices earlier got support from FED comments with no hurry in tapering stimulus. Bullion prices are hovering in steady range with dollar fluctuations and mixed global cues.
We expect bullion prices to trade sideways to up for the day. MCX Gold Aug resistance for the day lies at Rs. 47200 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 firm on Thursday with benchmark NYMEX WTI crude oil prices were trading 0.08% up at $73.14 per barrel in the morning trade. Crude oil prices traded higher continuing upside on supply tightness in US. The EIA report showed that US weekly oil stockpiles fell by 7.6 mb for the week reporting the second weekly decline. The speculation ahead of OPEC plus meeting next week and US summer driving season demand may keep oil prices on edge for short term.
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. 5510 per barrel.
BASE METALS
Base metals prices traded lower on Thursday with most of the metals pared previous gains. Base metals traded weak on firm dollar and China inflation worries. Base metals also traded under pressure on weak global equity indices on US inflation concerns.
Base metals prices may witness some correction on weak global cues for the day. MCX Copper June support lies at Rs. 712 and resistance at Rs. 725. MCX Zinc June support lies at Rs. 230, resistance at Rs. 238. MCX Nickel June support lies at Rs. 1310 with resistance at Rs. 1360.
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