GOLD

Gold prices on the COMEX extended their downward trend, falling 0.50% to trade at $4,461 as rising US Iran tensions and surging crude oil prices heightened global inflation risks. The market remains under pressure following Donald Trump’s warning that military strikes on Iran would resume if Tehran rejects Washington’s peace terms, particularly regarding its controversial nuclear program. This warning
follows a briefly aborted strike, which Trump had initially called off after appeals from Gulf allies.
Moving forward, if gold breaks below the critical support level of $4,450, it is highly likely to trigger
further selling pressure, potentially dragging prices down toward the $4,400 mark.

SILVER

COMEX silver prices held relatively flat, hovering near $73.75, as the market weighed Donald Trump’s warning to resume military strikes on Iran if a peace agreement is not reached within two to three days. A strengthening US Dollar Index added further downward pressure, briefly pushing the metal to a session low of $73.09. From a technical standpoint, silver is likely to see a bullish rebound if it manages to maintain its footing above the $71 mark. However, a break below the critical $69 floor
would likely shift momentum, clearing the way for deeper price corrections.

ENERGY

WTI crude oil extended its gaining momentum to trade near $104 per barrel, fueled by the ongoing
war and the continued blockade of the strategic Strait of Hormuz. On the technical front, prices
are currently facing strong resistance at the $105 level. A definitive breach above this $105 threshold could clear the path for a further upside rally, especially if Donald Trump follows through on his warning to resume military strikes against Iran should Tehran fail to agree to Washington’s peace terms within two to three days.

BASE METAL

MCX copper prices took a brief breather amid reescalating tensions in the Middle East, ultimately
settling the day at Rs 1,335 while successfully maintaining their footing above the critical Rs1,330 support level. Despite the geopolitical noise, the downside for the industrial metal remains capped by strong long-term fundamentals, including ongoing supply disruptions and rising global demand. Looking
ahead, if copper can sustain its position above Rs1,330, it is well-positioned to rally toward the Rs
1,350 mark in the coming days; conversely, a clean break below Rs 1,330 could shift momentum and drag prices down toward the Rs1,300 level.

Evening Commodity Trading Guide 20th May 2026 

Gold Technical Outlook

MCX Gold (Jun): The domestic June contract has established stability at elevated levels, moving cleanly in line with COMEX. Short-term price action remains well-contained within an established technical boundary. Overhead resistance is firmly positioned at ₹1,60,000 – ₹1,61,500, while a reliable structural demand zone lies between ₹1,58,600 – ₹1,57,500. Traders need to track these lower levels meticulously, as weakness in prices may continue after breaching support zones, which could invite further technical selling.

COMEX Gold (Spot): Spot gold is maintaining a steady Mixed Sentiment, carving out a reliable consolidation block just below multi-session highs. Immediate overhead friction is expected near $4,520 – $4,600, serving as the near-term hurdle for buyers. Conversely, downside exposure remains neatly insulated, with key support levels seen near $4,475 – $4,430.

Overall View: With the primary trend leaning constructively sideways-to-higher, the broader setup remains favorable for patient accumulation rather than aggressive breakout trading. For short-term players, maintaining tight boundary discipline is highly advised to avoid getting trapped in intraday whipsaws. Despite the near-term soft patch, the structural narrative remains valid for patient asset allocators; long-term investors can consider buying in small amounts on every dip inside the core demand pockets to smoothly average out entry costs effectively.

Silver Technical Outlook

MCX Silver (Jul): The domestic July contract has dropped back into an established consolidation channel, keeping near-term sentiments in line with COMEX. Immediate relief rallies are facing a well-defined wall of sellers, leaving technical resistance standing at ₹2,76,000 – ₹2,80,500. On the flip side, dynamic downside safety nets are expected near the support zone of ₹2,71,000 – ₹2,66,000. Caution is warranted near these baselines, as a clean breakdown could trigger stop-losses, meaning weakness in prices may continue after breaching support zones.

COMEX Silver (Spot): Spot silver has drifted into a Mixed Sentiment profile as market participants balance industrial demand expectations against near-term macro headwinds. The white metal is encountering prominent overhead friction, with resistance levels placed at $76.50 – $78 acting as a near-term cap. Meanwhile, localized buying interest continues to defend the structural floors, keeping major supports likely around $74.80 – $73.

Overall View: The silver market is currently content rotating within an established technical range, meaning patience and strict boundary discipline will yield the best risk-to-reward ratio. Shorter-term traders should protect trading capital by avoiding over-leveraged positions during intraday swings. On a macro level, this corrective phase offers a healthy entry window; long-term investors can consider buying in small amounts on every dip within the major demand pockets to steadily accumulate quality exposure.

Natural Gas Technical Outlook

MCX Natural Gas (May): Moving in line with International NYMEX Spot prices, the domestic May contract reflects a highly resilient and constructive chart posture. Short-term sellers are actively clustering around the immediate overhead resistance band at ₹304 – ₹310, while major structural buyers are waiting to absorb declines near the support floor of ₹295 – ₹287. Technical indicators suggest that the energy asset may see an upmove after sustaining above the resistance zone, which could open the door for a fresh leg of momentum buying.

NYMEX Natural Gas (Spot): NYMEX Natural Gas continues to sustain a positive Bullish Sentiment, driven by tightening storage data and shifting seasonal demand projections. Initial price spikes face a technical ceiling, with resistance standing at $3.32 – $3.36. On the lower boundary, downside corrections are being picked up quickly by bulls, leaving key support levels well-entrenched between $3.25 – $3.20.

Overall View: The broader underlying structure for the gas complex remains tilted in favor of the bulls, making long exposure on mild price pullbacks or breakout confirmations the preferred tactical blueprint. However, because natural gas is highly reactive to sudden weather models and policy shifts, market participants must manage trade parameters aggressively. Traders should remain extra cautious, as heightened volatility persists amid ongoing geopolitical tensions.

Zinc Technical Outlook

MCX Zinc (May): Faithfully tracking the global trend, the domestic May contract continues to showcase an incredibly powerful and resilient technical footprint. Intraday advances face immediate friction around the key resistance band at ₹370.50 – ₹374. Meanwhile, an extraordinarily sturdy base of demand is waiting underneath to catch minor price soft patches, with reliable structural support expected near ₹367.50 – ₹364.50. Charts indicate the metal may see an upmove after sustaining above the resistance zone, signaling a clean validation of its broader structural trend.

LME Zinc (Spot): LME Zinc continues to march ahead with a firm Bullish Sentiment, energized by persistent global supply constraints and robust physical spot market demand. The industrial metal is actively challenging upper milestones, with immediate overhead resistance standing at $3,540 – $3,560. On the flip side, seller dominance remains strictly limited, with key support levels firmly established between $3,520 – $3,500 to keep the uptrend intact.

Overall View: The structural framework across the industrial metals space heavily favors the bulls, making the accumulation of long positions on brief price retracements the preferred playbook. Nonetheless, because macro variables and supply-chain logistics remain highly fluid, sudden turns in headline risk can quickly alter near-term trends. Traders should remain extra cautious, as heightened volatility persists amid ongoing geopolitical tensions. Lock in partial profits at regular technical intervals and rely on robust risk management rules to protect trading capital.

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