Commodity Mantra Morning Update: Gold lower, Oil higher; metal pack mixed

Here is the global trend and our view on Commodities.

Jan 14, 2020 02:01 IST India Infoline News Service

Commodities
Gold
On Tuesday, gold prices slipped lower as middle east tension eased. Spot Gold was trading down at $1,539, whereas Comex Gold Future was trading down 0.72% at $1,539.45/ounce.
 
MCX Gold price has shown negative movement form lower levels during Monday’s session and closed at 39,590 levels. Gold price has taken support of its horizontal trend line at 39,500 levels on the hourly chart. MCX Gold price has taken support of its rising trend line on the hourly chart at 39,450. In addition, gold price is trading above its parabolic SAR indicator, which suggests short term trend remains up. Momentum indicator MACD has given positive crossover on the hourly chart, which also indicates the upside move in the prices. Momentum indicator RSI has shown positive crossover on the hourly chart, which also supports our bullish view in the commodity. However, breakdown of support level at 39500 may induce selling pressure which may take gold price towards 39300.
 
Oil
On Tuesday, oil prices remains steady ahead of trade deal. West Texas Intermediate (WTI) crude was up 0.26% at $58.23, whereas Brent crude was up 0.25% at $64.39.
 
MCX Crude Oil price has moved lower during the day and closed at 4,122 level. The price has given breakdown of lower band of rising channel at 4,250 levels on the hourly chart. MCX Crude Oil price is trading below its Parabolic SAR on the hourly chart. The Momentum indicator RSI has shown negative crossover on the daily time frame, which indicates possibilities of more downside in the prices. Crude oil price has given breakdown of horizontal trend line at 4,300. Based on the above technical parameter, MCX Crude Oil is looking bearish with a potential to reach 4,060.
 
Base Metals
On Tuesday, base metals were trading with mixed bias. On London Metal Exchange (LME), Aluminium was up 0.25% at $1,801.25 whereas Copper was down 0.17% at $6,280. Zinc was down 0.29% at $2,368, while Lead was flat at $1,914.
 
Metal prices opened on mixed note on Monday’s session. Aluminium price has given breakout of its falling trend line at 141.50 levels on the hourly chart, while Lead price has faced resistance of its falling trend line at 153 levels on the hourly chart. Lead price is trading below its 50-day moving average, which supports our bearish view. MCX Nickel price has faced resistance of its rising trend line at 1,040 levels on the hourly chart. Zinc price has faced resistance of its falling trend line at 183 levels on the hourly chart. Copper price is trading below its Parabolic SAR, which indicates short term trend remains negative. Copper price has faced resistance of its falling trend line at 450 levels. Based on the above technical parameter, MCX Copper looking bearish with a potential to reach 445.

Related Story