Metals trade steady, oil prices may decline further
Commodity Online | June 30 2020
UPDATED 17:48:29 IST

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Precious Metals are trading slightly lower today with Gold futures at $1778.35/oz, down 0.16% whereas Silver is at $18.06/oz, up 0.05% currently. Bullions have steady over the last two days after price rose sharply to test resistance near $1800.0 as worries over further lockdowns, weakened economy and geopolitical tensions continued to support prices. We expect prices to trade with a slightly negative bias today with traders shifting focus to macro releases due tomorrow for further direction. MCX Gold is testing strong support at 48200 breaking which we expect further short selling to push prices to 48000 and possibly lower in the evening session today. Silver Sep is expected to remain resilient and only a break below support at 49000 would see prices decline to 48700-48500 in the evening session.

 

Crude Oil futures have declined sharply today with WTI down 58 cents or 1.46% to $39.12/bbl whereas Brent is at $41.28/bbl, down 60 cents or 1.43% currently. MCX Crude Oil is trading with a sharp negative bias and we expect prices to test 2900 in the evening session today whereas on the upside, resistance is seen at 2970. Natural Gas prices are higher by almost two percent today and we expect further upside in the evening session as prices break above resistance at 132.20 – on the upside, price objectives are seen at 135.0-136.40 today.

 

Base Metals opened higher and have been trading with a positive bias since then. LME 3-month Copper futures are at $6034.50/ton, up 1.11% followed by Zinc at $2069.25/ton, up 0.68% today. Base Metals have extended gains on domestic bourses following the gains on LME and technical action indicates that prices may correct marginally due to profit booking. We continue to remain neutral on prices from a short term perspective.

Sam Nair



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