Commodity outlook: Short-term bias for gold looks negative

Crude oil lost some steam globally today as macro growth concerns took hold.

Brent crude was 0.15 per cent down at $67.76 per barrel while WTI slipped 0.20 per cent to $59.86.

Gold and silver too succumbed to demand slowdown as they moved lower.

Let's check out projections on commodities by various brokerage houses.

Agri commodities (Outlook by Angel Broking)

Soybean: Soybean futures are expected to go sideways to higher as El Nino gains strength, which affects the monsoon pattern. However, higher availability may further pressure prices at higher levels.

Mustard seed: Mustard futures are seen higher as states are gearing up to procure mustard at MSP (Rs 4,200). There are expectations of meal demand from China following a trade dispute with Canada. However, forecast of bumper crop production may keep prices under control. Higher production may still strain prices.

Refined soy oil: Angel Broking expects ref soy oil to trade positive on low level buying while higher supplies and steady physical demand would keep prices in a range. Stronger rupee is keeping imports higher and cheaper. Improved imports of edible oil in January and February may put further pressure on prices in coming weeks.

Crude palm oil: CPO futures are expected to trade sideways to higher tracking improved Malaysia prices. Lower tariff value and higher import figures may hurt prices. Moreover, higher edible oil stocks by 20 per cent compared to last year ports may push down prices of edible oil.

Chana: Chana futures are expected to trade sideways to higher on reports of diminishing stocks with traders amid lower imports and high consumption. However, higher stocks with government agencies coupled with higher crop production for the third consecutive year may keep prices in check.

Cotton: Cotton futures may show sideways to higher tilt due improving in exports demand from China. Moreover, increasing domestic demand and procurement by CCI also support prices. However, reports of CCI likely to start selling its stock may keep prices in a range.

Jeera: The brokerage firm expects Jeera futures to trade on positive note as demand is improving from the bulk buyers. However, higher availability in the physical market and expectation of improved crop prospects keeping prices under control.

Turmeric: Turmeric futures are expected to improve in coming days due to improving physical demand. Moreover, government procurement in some states may support price rise. However, new season arrivals and good production prospects may keep prices sideways.

Copper: Concerns over a possible trade deal between US and China might weigh on the red metal prices. On the MCX, copper prices are expected to trade higher today.

Crude Oil: Supply cuts by OPEC and its allies might continue to support crude, but fresh concerns over US-China trade relations might weigh on crude. On the MCX, oil prices are expected to rule firm.

Precious metals (Outlook by Motilal Oswal Financial Services)

Gold: Short-term bias for MCX Gold looks negative below stiff resistance at Rs 32,080-32,100 zone. Selling on rallies towards immediate resistance at Rs 31,950 is thus advised. Breach of support at Rs 31,700 could trigger further decline towards Rs 31,550 mark.

Silver: MCX Silver is likely to be range bound between immediate support at Rs 37,900-37,700 and resistance at Rs 38,450-38,600 zone. Trading on the extremes of this range i.e selling near resistance or buying near support is thus advised.