Gold edges higher on Fed rate cut; oil prices decline

Here are the key commodity trends globally and our view on commodities.

Oct 31, 2019 07:10 IST India Infoline News Service

Gold
On Thursday gold prices edged higher after the US Federal Reserve cut interest rates as expected, even as the central bank dropped a previous reference in its statement that signalled future rate cuts. Spot gold rose 0.3% to $1,499.06/ounce. US gold futures inched 0.3% higher to $1,501.40/ounce. The US central bank on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signalled there would be no further reductions unless the economy takes a turn for the worse.

MCX gold price has shown positive momentum from lower levels last session and closed around 38,060 levels. Gold price has taken support of its rising trend line on the hourly chart at 38,000 levels. Gold price is trading above its super trend indicator on the hourly timeframe, which indicates more upside in the prices. Momentum indicator RSI has given positive crossover on the hourly chart. On the other hand, MACD has shown positive crossover on the hourly chart, which also supports our bullish view in the commodity. Based on above technical parameters, gold is looking bullish with a potential to reach 38,350.

Oil
On Wednesday, Oil prices fell for a fourth day, extending losses after a surge in US inventories surprised investors, overshadowing an interest rate cut by the Federal Reserve. Brent crude futures were down at $60.55/barrel, having fallen by 1.6% on Wednesday. US West Texas Intermediate (WTI) crude futures were down 0.3% at $54.90/barrel, after declining 0.9%. 

MCX crude oil price has moved lower from higher levels during the last day and closed at 3,900 levels. The price has taken support lower band of its rising channel pattern trend line at 3,860 levels. Crude Oil price has taken support its horizontal trend line at 3,850 levels on the hourly chart. The Momentum indicator RSI has given positive crossover on the hourly chart, which indicates possibilities of more upside in the prices. Momentum indicator MACD has shown positive crossover on the hour chart, which also indicates the positive bias in the prices. Based on above technical parameters MCX Crude Oil is looking bullish with a potential to reach 3,960.

Base Metals

On Wednesday, Metal prices opened on a mixed note. Aluminium price has taken support of its rising trend line at 131 levels on the hourly chart, while Lead price has given breakout of its falling trend line at 156 levels on the hourly timeframe. Momentum indicator RSI has shown positive crossover on the hourly chart, which indicates bullishness in the prices. MCX Nickel price has taken support of its rising trend line at 1195 levels on the hourly chart. Nickel price is trading above its Parabolic SAR, which indicates short term trend remains up. Zinc price has faced resistance of its falling trend line at 192 levels on the hourly chart. Zinc prices is trading below its super trend indicator, which suggests negative momentum in the price. Copper price has faced resistance of its ascending triangle pattern at 445 levels during the last session. Based on above technical parameters MCX Copper is looking bearish with a potential to reach 440.

Related Story