silver prices today: commodity strategies: gold, silver, crude, base metals
Commodity prices traded mixed on Friday, continuing the trend of the previous session. On Thursday, most commodities in the non-farm segment remained within a narrow trading range. Bullion prices continued to trade in a range on mixed global indices, while base metals traded mixed, with zinc and nickel gaining the most. Crude oil prices traded flat pending the results of the OPEC meeting. The dollar index ended unchanged at 91.81 for the day. Here is an overview of how the different products behave in today’s market.
Bullion prices stabilized on Friday as the COMEX spot gold price traded near $ 1,776 per ounce while the COMEX spot silver price traded at $ 26l ounce in the morning trade. Precious metals are trading muted on mixed global indices with a firm dollar. The lack of economic data has kept prices in a range as traders and investors wait for new triggers. We expect bullion prices to trade sideways to rise for the day.
August gold resistance for the day stands at Rs. 47,200 per 10 grams with support at Rs. 46,600 per 10 grams.
MCX Silver July support stands at Rs. 66,500 per KG, resistance at Rs. 69,800 per KG.
Outlook: crude oil
Crude oil prices traded flat on Friday with the benchmark NYMEX WTI crude oil price trading at $ 73.33 per barrel in morning trading. Crude oil prices have remained within trading ranges, following mixed global indices. The outlook for higher demand ahead of the summer driving season in the United States and the resumption of fuel demand in the United States and Europe has kept oil prices firm. Speculation ahead of the OPEC plus meeting next week and demand for the summer driving season in the United States could keep oil prices at the limit in the near term. We expect crude oil prices to trade sideways to rise for the day.
The July support for MCX crude oil is at Rs. 5,380 per barrel with resistance at Rs. 5,510 per barrel.
Outlook: Base metals
Base metal prices traded mixed on Friday, with most metals remaining positive for the day. Base metals were supported after a bipartite US $ 579 billion infrastructure deal boosted economic optimism and demand for commodities. Copper rebounded from its two-month low on improving prospects in the United States and weaker-than-expected sales of state commodity reserves in China. We expect base metals to trade sideways to rise for the day.
MCX Copper June support stands at Rs. 715 and resistance at Rs. 725.
MCX Zinc support for June is at Rs. 236, resistance at Rs. 243.
MCX Nickel June’s support stands at Rs. 1340 with resistance at Rs. 1410.
(Tapan Patel is Senior Analyst (Commodities) at HDFC Securities)
By Ravindra Rao
MCX Gold August futures traded in a range during the last trading session as the price did not break above key resistance at Rs. 47,380 (250-day EMA). It appears that the market is stuck between the range of Rs. 46600-47380 after the sharp drop last week. The bearish cross of the 10 and 50 day EMA has lowered bullish bets on gold futures. On the momentum front, the MACD reversed as the histograms turned negative, suggesting a lower sideways trend. The RSI hovering around 35 also suggests a weaker trend.
So for the day the trading range appears to be between Rs. 46600-47380. Only a closing break on either side would bring more clarity to the trend. A move below Rs. 46,600 would bring renewed selling pressure and push the price towards Rs. 46,200. On the other hand, a move above Rs. 47,380 would extend the rise towards Rs. 47,700-47900 levels.
The MCX Gold August futures trading range is between Rs. 46600-47380.
MCX Silver July futures have continued to trend sideways since the start of the week. For July futures, Rs. 66,900 (61.8% Fibonacci retracement level) holds key support, if the price fails to maintain said levels it would weaken towards Rs. 65,500. Likewise, on the upside, Rs. 68,900 holds as key resistance. If Silver manages to settle above Rs. 68,900, then it would test the next key resistance area of Rs. 69750-70200.
Short term momentum has turned negative as RSI hovers around 35. So for the day the price may continue to move in the range of Rs. 66900-68900 with a sideways bias. Only a close below Rs. 66,900 would extend the weakness to Rs. 65,500.
The MCX Silver July futures trading range is between Rs. 66900-68900.
(Ravindra Rao, CMT, EPAT is VP-Head Commodity Research at Kotak Securities)