Commodity Mantra Morning Update: Gold, Oil lower; Base Metals mixed

Here is the global trend and our view on Commodities.

May 26, 2020 08:05 IST India Infoline News Service

Commodities
Gold
On Tuesday, gold remains soft as Japan may come out with stimulus worth $929bn. Spot Gold was up 0.42% at $1,733 whereas COMEX Gold Future was trading down 0.03% at $1,733 per troy ounce.
 
MCX Gold prices has moved above 100EMA on the hourly chart; however, it found resistance at previous swing high. The hourly RSI is in a bullish crossover. On the lower end support seen at 46800 while on the higher end resistance seen at 47300.
 
Oil 
On Tuesday, oil remains strong as suppliers cut output. West Texas Intermediate (WTI) crude was up 2.50% at $34.08 whereas Brent crude was up 0.99% at $35.88.
 
MCX Crude oil prices found support at 100EMA on the hourly chart which led to a bit recovery. Additionally, selling pressure was visible around the previous swing high. Going forward, some profit booking may take place. On the lower end support seen at 2440 while on the higher end resistance seen at 2650.
 
Base Metals
On Tuesday, base metals were trading with mixed bias. On London Metal Exchange (LME), Aluminium was up 0.70% at $1,513 whereas Copper was up 0.73% at $5,342, Zinc was down 0.97% at $1,965 while Lead was up 0.89% at $1,663.
 
MCX Copper prices fell below 100EMA on the hourly chart which led to strong correction. The hourly RSI is in bearish crossover. On the lower end, support seen at 404/400 while on the higher end, resistance seen at 412.

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