On Monday, gold corrected as profit booking continued at the higher levels. Spot Gold was down 0.74% at $1,619 whereas COMEX Gold Futures was trading 0.24% lower at $1,650 per troy ounce.
MCX Gold, has found resistance at the previous swing high, which led to a profit taking. Price was seen consolidating at the higher level. The hourly RSI has turned its head downwards and entered into a bearish crossover. The current bullish sentiment is losing steam, as after a sharp rally, price generally sees a pullback. Going forward, price may find resistance at 43700; on the lower end, support is visible at 43240.
On Monday, oil prices remained weak due Saudi Russia price war. West Texas Intermediate (WTI) crude was down 5.31% at $20.41, whereas Brent crude was down 4.72% at $26.62.
MCX Crude has slipped below previous low during the last session indicating rising bearish bet. On the daily timeframe, price has been hovering within the bands of 1700 and 2000. On Friday, price fell below 1700; however, closed just above 1700 mark. A decisive breakdown of 1700 may unleash more bear power and price may head toward 1600. On the lower end, price has support at 1600 in the near term. On the higher end, resistance is visible at 1830.
On Monday, base metals were trading mostly with negative bias. On London Metal Exchange (LME), Aluminium was down 0.45% at $1,544 whereas Copper was down 1.06% at $4,762. Zinc was down 0.81% at $1,860 while Lead was down 0.49% at $1,682.
MCX Copper price has found resistance around 100 EMA (was pegged around 378), which led to correction towards 374. The bias has now turned a bit negative from sideways, as failure to move above the important moving average level induced selling pressure. On the lower end support seen at 370/364 while on the higher end resistance seen at 378.