Commodity Mantra Morning Update: Gold, oil up; base metals mostly higher

Here is the global trend and our view on Commodities.

Mar 24, 2020 02:03 IST India Infoline News Service

Commodities
Gold
On Tuesday, gold moved higher as US Fed announced further steps to combat COVID-19. Spot Gold was trading 1.79% higher $1,580 whereas COMEX Gold Future was trading 2.02% higher at $1,599 per troy ounce.
 
MCX Gold, has moved above its previous swing high on the hourly chart, which suggests rising bullishness. Indicator RSI has entered a bullish crossover on the daily chart. Going forward price may move higher. On the lower end, support is visible at 40900/40700; on the higher end, price has resistance at 41270/41450.  
 
Oil 
On Tuesday, oil price recovered on the expectation of renewed US-OPEC deal. West Texas Intermediate (WTI) crude was up 04.97% at $24.53, whereas Brent crude was up 4.11% at $28.15.
 
MCX Crude has closed lower after a volatile session. On the lower end price slipped below previous session’s low however, it managed to close off the day’s low. On the daily chart, price has found support around previous swing low. Going forward, price may witness a pullback as long as it holds above the previous swing low of 1717. On the lower end, price has support at 1717/1645 in the near term. On the higher end, resistance is visible at 1900/1960.
 
Base Metals
On Tuesday, base metals were trading with negative bias. On London Metal Exchange (LME), Aluminium was down 0.16% at $1,556 whereas Copper was up 2.29% at $4,713. Zinc was up 0.98% at $1,832 while Lead was down 1.45% at $1,638.
 
MCX Copper price has fallen below previous swing low and so far failed to move above the that suggesting resilience of the bear force. The bias is expected to remain negative as long as it sustains below 365. On the lower end support seen at 355 while on the higher end resistance seen at 365/378.

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