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Commodity outlook

by Kshitij Purohit (Product Manager, CapitalVia Global Research- investment Advisor)
Nov 20, 2020

All the assets was firmed on Monday and followed news of Moderna, a pharmaceutical company, they reported 94.5% efficacy for their Vaccine in preventing Covid-19.  Economic sentiments are improved and Indian Rupee appreciated against the U.S Dollar. The yield on US 10-year treasuries came down to 0.91%, which made high 0.98% last week. 

Here is a look at how different commodities.

Outlook: Bullion
Bullion prices traded steady on Tuesday amid mixed global cues, between rising covid cases and vaccine optimism.  Downside was capped as the U.S. Dollar Index was weak against the basket of currencies. Prices are expected to trade Sideways as weaker dollar may continue to support bullion prices. Both Gold and Silver Prices are consolidating and is trading in the Narrow Range.  

Gold :  
Gold is trading on positive note where its holding above 50500 and is trading near 50800 indicating for sideways to marginal upside momentum where immediate support is at 50500  levels & Resistance 51250 levels. 

Silver :  Silver trading on a flat note & in narrow range where it is likely holding above 63000 levels indicating for sideways momentum to continue in a range of 61000 -64000. MCX Silver December is trading above 63000 levels indicating upside momentum to continue however downside 63200-62300 will hold a support & 64400-65200 will be a resistance.

Crude Oil

Crude oil Prices are volatile and getting support of Vaccine news. Upside is capped amid global demand as Covid-19 Cases are rising around the world. Markets will look ahead of the important OPEC+ meeting today. It could recommend changes in production quotas.

Technically, MCX Crude November is trading near 3070 level indicating sideways to marginal positive momentum. Resistance is at 3110-3160 levels and Support is at 3050-3010 levels. Crude Oil is having a support of 100-Daily Moving Average which is placed at 3004 levels from where a bounced back activity can be expected.

Base Metals
Base metals prices trading on positive note taking view from border market. Vaccine hopes boosted demand prospects. All base metals getting boost from rebound in China’s manufacturing and infrastructure activity. The rally in equity indices and weaker dollar may continue to support base metals on risk on sentiments.

Copper Technical Update

MCX Copper November has bounced from 542.95 levels up to 551 levels which is its 52wks high level indicating for upside momentum. It could be in a range of 544-551 levels in coming session. Bullish momentum will continue and price may come 555 in coming session.

Nickel Technical Update

MCX Nickel November remain firmed on Monday and made 52 new high of 1213.50. Minor profit booking came in prices after new high. Strong demand and good economic sentiments will help the price to remain firm. MCX Nickel having good support at 1170 and 1150 levels. It will continue to trade in the range of 1170 – 1200 levels in coming week.