Precious Metals are trading steady today after the sharp rally seen last evening on the back of weakening unemployment reports from the US. Gold futures are trading at $1774.0, up 0.18% and Silver futures are trading at $18.003, up 60% currently. Unemployment claims increased by 1.48 M compared to 1.5 M in the previous week which was much higher than expected reflecting a grim picture of the worsening US labour market. The report triggered a selloff in the dollar index and equities which pushed Gold prices higher in the late session. We expect precious metals to trade neutral today given the lack of economic releases. MCX Gold finds strong resistance at 48150 breaking which we may see a small rally in prices whereas support is seen at 47800.0. Silver prices are trading with a slightly positive bias and we may see prices test 45500-45700 today.
WTI Crude Oil opened higher and is trading unchanged at $38.72 currently whereas Brent Oil is trading at $41.26, up over half a percent currently. Natural Gas is down half a percent at 41.53 currently. WTI pries saw a dramatic increase in the evening session yesterday as traders booked profits after the recent fall in prices. Despite, the strength in prices, we firmly believe that the optimism in oil prices is simply driven by sentiment instead of true fundamentals as demand figures are still a long way from reaching pre-covid levels. The intraday bias is inclined to the lower side today and we expect oil prices to test 2900 and possibly lower to support at 2850 whereas on the upside, a break above 2980 may see a marginal increase in prices.
Base Metals are trading strong today with Nickel leading gains at $12782.50, up 2.44% followed by Copper at $5991.75, up 0.95% currently. The rest of the metals are trading significantly higher today. Base Metals are trading with a very strong positive bias as recovering demand from China and falling inventories provide a massive boost to prices. We maintain a positive outlook and expect metals to rally further in the evening session.