Gold steady while Oil pares gains; base metals trade in the green

Here is the global trend and our view on precious metals, base metals and crude oil.

Oct 24, 2019 07:10 IST India Infoline News Service

Commodities
Bullions
on Thursday, gold held ground above $1,490 per ounce as investors awaited clarity on Brexit after the European Union delayed a decision on granting an extension to Britain, and the US central bank policy meeting for clues on the interest rate trajectory. Spot gold was unchanged at $1,491.83/ounce. US gold futures was flat at $1,494.60/ounce.
 
MCX gold price has moved higher from lower levels during the last session and closed at 38,003 levels. The price has given breakdown of its rising trend line on the hourly chart at 38,150 levels. The price is trading below its Parabolic SAR indicator on the hourly timeframe, which indicates more downside in the prices. Momentum indicator RSI has moved below 60 levels on the hourly chart. On the other hand, MACD has shown negative crossover on the hourly chart, which also supports our bearish view in the commodity. Based on above technical parameters, gold is looking bearish with a potential to reach 37,850.


Base Metals
On Thursday, base metals were trading with positive bias. On London Metal Exchange (LME), Aluminium was up 0.13% $1,728.75, whereas Copper was up 0.13% at $5885.25. Zinc was up 0.20% at $2,477.25, while Lead was up 0.24% at $2221.75.
 
On Wednesday, metal prices opened on a flat note. Aluminium price has given breakdown of its falling trend line at 133 levels on the hourly chart, while Lead price has faced resistance of its rising trend line at 156.50 levels on the hourly timeframe. Momentum indicator RSI has shown negative crossover on the hourly chart, which indicates bearishness in the prices. MCX Nickel price has faced resistance of its horizontal trend line at 1200 levels on the hourly chart. Nickel price is trading below its Parabolic SAR, which indicates short term trend remains weak. Zinc price has given resistance of its rising trend line at 186.10 levels, on the hourly chart. Zinc price is trading below its Parabolic SAR indicator, which suggests negative momentum in the price. Copper price has taken support of its rising trend line at 437 levels during the last session. MCX Copper price is trading above its Parabolic SAR indicator on the hourly chart, which indicates medium trend remains up. Based on above technical parameters MCX Copper is looking bullish with a potential to reach 441.

Energy
On Thursday, Oil prices dipped on lingering concerns about a weak demand outlook, after surging more than 2% in the previous session on the back of a surprise draw in US crude stocks. Brent crude futures fell 0.6%, to $60.78/barrel, whereas West Texas Intermediate (WTI) crude futures dropped 0.8%, to $55.51/barrel.

MCX crude oil price has moved higher during the last day and closed at 3,948 levels. The price has given breakout of its ascending triangle pattern at 3,890 on the hourly chart levels. Crude Oil price has given breakout its falling trend line at 3,885 levels on the hourly chart.  In addition, price is trading above its Parabolic SAR on the hourly chart, which suggests short term trend remains up. The Momentum indicator RSI has moved above 60 levels on the hourly chart, which indicates possibilities of more upside in the prices. Momentum indicator MACD has shown positive crossover on the hourly chart, which also indicates the positive bias in the prices. Based on above technical parameters MCX Crude Oil is looking bearish with a potential to reach 4,000.

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