Copper prices are expected to face the resistance near 712 -ICICI Direct
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Metal’s Outlook
Bullion Outlook
• Spot gold is likely to remain under pressure as better than expected US economic number increased the probability of higher interest rates. Further, rise in US dollar and treasury yields could also hurt the bullion price. The CME FedWatch tool suggest more than 85% probability of 25 bps hike in the upcoming Fed meeting. Meanwhile, investors will remain cautious ahead of US core PCE price index number
• MCX Gold price is likely to decline towards 57650, as long as it trades under the 10 day EMA at |58,480. Only close below |57650, would weaken towards | 57,300 levels
• MCX Silver is expected to move towards |68400 as long as it trades below | 70500 level
Base Metal Outlook
MCX Copper vs. Aluminium Performance
• Copper prices are expected to face the resistance near |712 and weaken towards |698 on contraction in global manufacturing activities due to higher interest rates. Further, prices may slip on strong dollar and as China’s factory activity contracted for 3 rd consecutive month. However, sharp downside may be cushioned on declining stocks at LME registered warehouses and hopes for more stimulus from China
• MCX Copper is likely to consolidate in a broader range of |712 |698. Only close below |698 it would slip further towards | 692.
• MCX aluminium is expected to weaken towards |195, as long as it trades below |200.
Energy Outlook
MCX Crude Oil vs. Natural Gas Performance
• Crude oil prices are expected to trade with positive bias amid steep drawdown in oil inventories and Saudi Arabia has pledged to sharply cut its oil output in July. Additionally, investors will keep an eye on US Oil rig count data, an indicator of future supply. However, expectation of higher interest rates in western economies to control the inflation could restrict its gain.
• MCX Crude oil is expected to hold the support of |5650 and rebound towards the immediate resistance of 10-day EMA at |5810
• MCX Natural gas is expected to hold the support of 10 day EMA near |217 level and move back towards |230 amid forecast of above normal temperature in Texas for the next 10 days.
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