Precious Metals are having a quiet session today with Gold futures at $2028.85, up half a percent whereas Silver is gaining nearly three percent since open at $28.308 currently. Following the sharp rout in precious metals on Friday, the rapid buying momentum seems to have taken a pause and is expected to push prices lower this week. Even though weakening US dollar on account of added stimulus measures by the government is flooding the market with easy money, the inflation is also playing its part in supporting gold prices in its rally. The overall fundamentals continue to support prices and while the short-term outlook remains positive, we expect prices to decline further once it breaks below support at 54700 to test price objectives at 54000-53500 this week whereas on the upside, a breakout above resistance at 55200.0 could see buying re-emerge.
Base Metals are trading with a slight bullish bias today with Copper up over a percent at Rs.507.80 and Nickel at Rs.1088.0, down 0.69%. We expect limited upsides in base metals and expect prices to decline further in the short term. Crude Oil continues to consolidate in the present range with WTI futures trading at $41.79, up 1.41% while Natural Gas is down 0.27% to trade at $2.234 currently. Technically, we continue to maintain a bearish bias on oil and expect it to decline to 2900-2850 this week. Natural Gas should continue to remain positive and a buy on dips strategy is advisable.