Gold Could Stay Bearish, Crude Oil To Hold Steady Due To Production Cuts

Gold prices gained in the first trading session of New Year, but the medium term trend could remain bearish. Gold prices rebounded during last week of 2016 due to profit booking. We can expect prices to trade bearish below its key support of $1145 to test its previous low of $1122.5. A near term target up to $1100 to $1080 cannot be ruled out.

Gold Futures in MCX rose over 1.5% last week after a continuous downside over several weeks. We can see a key resistance at Rs.27650 to Rs.27700 levels; expect prices to retrace downside till Rs.27300 to Rs.27100 levels in coming days.

Silver looks more bearish and we can see a strong hurdle at $16.2. The long term trend for silver remains bearish from $20.5 and could expect prices to test $15.5 to $15 in near term. MCX Silver for March delivery could face its key resistance at Rs.39700 to Rs.39800. We can expect prices to trade bearish to test Rs.39000 to Rs.38500 shortly.

Copper trading higher over 1% in early trades as China Caixin Manufacturing purchasing managers index rose. Copper prices expected to trade firm on sustain above Rs.380 for targets up to Rs.385 to Rs.390. All other base metals lacking momentum, nickel to trade sideways around Rs.680 to Rs.700. Lead January contract could face its hurdle at Rs.138 levels and could trade around Rs.136 to Rs.138 for near term. Zinc prices caught in a range of Rs.173 to Rs.175.

Crude Oil could hold its bullish trend and we can see more upside on a break above $54.5 till $55.5 to $57. Earlier prices were trading in a sideways move around $53.4 to $54.1. Prices trading firm in early trades on Tuesday. Crude Oil in MCX Futures trading bullish over 1%. We can expect prices to stay bullish up to Rs.3750 to Rs.3800 levels. Natural Gas prices down over 6% and could trade bearish till Rs.235 to Rs.230 in coming sessions.