Commodity Mantra Morning Update: Gold up, Oil lower; metals pack mixed

Here is the global trend and our view on Commodities.

Dec 11, 2019 02:12 IST India Infoline News Service

Commodities
Gold
On Wednesday, Gold traded little changed ahead of tariff deadline. Spot Gold was trading up at $1,464.29, whereas Comex Gold Future was trading up 0.03% at $1,468.55/ounce.
 
MCX gold price has shown negative movement form higher levels during Tuesday’s session and closed at 37,571 levels. Gold price has faced resistance of its falling channel pattern at 38,050 levels on the daily chart. MCX Gold price has given breakdown of its rising trend line on the hourly chart at 38,200. In addition, gold price is trading below its 50-day moving average, which suggests medium term trend remains down. Momentum indicator MACD has given negative crossover on the daily chart, which also indicates the downside move in the prices. Momentum indicator RSI has moved below 60 levels in on the hourly chart, which also supports our bearish view in the commodity. Based on the above technical parameters Gold is looking bearish with a potential to reach 37,400.     
 
Oil
On Wednesday, oil prices slipped on the back of rise in US crude stock build up. Brent crude was down 0.39% at $63.92. West Texas Intermediate (WTI) crude was down 0.51% at $58.94.
 
MCX crude oil price has moved higher during the day and closed at 4,195 level. The price has faced resistance of its falling trend line at 4,250 levels on the hourly chart. MCX crude oil price is trading below its Parabolic SAR on the daily chart. The Momentum indicator RSI has moved in oversold zone levels on the hourly time frame, which indicates possibilities of more downside in the prices. Crude oil price has faced resistance of horizontal trend line at 4,235. Based on above technical parameter MCX Crude Oil looking bearish with a potential to reach 4,120.
 
Base Metals
On Wednesday, base metals were trading with mixed bias. On London Metal Exchange (LME), Aluminium was up 0.09% at $1,755 whereas Copper was down 0.20% $6,079.50. Zinc was down 0.07% at $2,222.50, while Lead was up 0.42% at $1,922.50.
 
Metal prices opened on positive note on Tuesday’s session. Aluminium price has faced resistance of its falling trend line at 133.60 levels on the hourly chart, while Lead price has faced resistance of its falling trend line at 153.50 levels on the hourly chart. Lead price is trading above its 50-day moving average, which supports our bearish view. MCX Nickel price has faced resistance of its horizontal trend line at 1,010 levels on the hourly chart. Zinc price has taken support of its horizontal trend line at 181 levels on the hourly chart. Copper price is trading above its 50-day moving average, which indicates short term trend remains positive. Copper price has given breakout of its falling trend line at 434.50 levels. Based on above technical parameter MCX Copper looking bullish with a potential to reach 442.

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