MCX Copper May is expected to slip back towards Rs 1295 level as long as it stays below Rs 1320 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to slip back towards $4650 level amid strong dollar and rise in US treasury yields. Further, prices may slip as renewed hostilities in Middle East may weaken the hopes for near term peace agreement and reignite inflation concerns and higher interest rates for prolonged time. US said it has intercepted Iranian attacks and launched defensive strikes, although US President said ceasefire remains intact. Additionally, investors will remain cautious ahead of job data from US as to see whether economy remains resilient enough for Federal Reserve to hold rates steady or whether softening of labor market condition could revive the case for monetary easing. Furthermore, US is awaiting response from Iran on proposal to end the war and reopen Strait of Hormuz. Meanwhile, sharp fall may be cushioned on strong central bank buying. China continued to add gold to its reserve in April, marking consecutive 18th month. MCX Gold June is expected to slip back towards Rs 151,500-Rs 150,500 level as long as it stays below Rs 155,000 level
• MCX Silver July is expected to rise towards Rs 264,000-Rs 267,000 level as long as it stays above Rs 255,000 level
Base Metal Outlook
• Copper prices are expected to trade with negative bias amid strong dollar and risk aversion the global markets. Market sentiments are hurt on renewed tension between US and Iran after they exchanged fire, putting month long ceasefire in doubt. Further, investors will remain cautious ahead of slew of economic data from major economies to gauge economic health and demand outlook. Meanwhile, prospect of stronger demand in China would cushion sharp fall in prices. Yangshan copper premium, a gauge of China's appetite for imported materials, increased to $69 a ton, signaling demand.
• MCX Copper May is expected to slip back towards Rs 1295 level as long as it stays below Rs 1320 level. A break below Rs 1295 level prices may be pushed towards Rs 1290-Rs 1285 level
• MCX Aluminum May is expected to slip towards Rs 365-Rs 362 level as long as its stays below Rs 373 level. MCX Zinc May is likely to hold support near Rs 344 level and rise towards Rs 350-Rs 352 level
Energy Outlook
• NYMEX Crude oil is likely to trade with positive bias on fresh supply concerns amid hostilities in Middle East. Further, prices may rally as renewed tension between US and Iran may threaten ceasefire and dash hopes for progress on reopening of Strait of Hormuz. Iran accuses US for violating month long ceasefire. Iran tells US targeted Iranian oil tanker and another ship and civilian areas. Elsewhere, Trump’s 10% global tariffs were declared unlawful by a federal trade court, a fresh blow to the US President Donlad Trump administration. Meanwhile, sharp upside in the prices may be capped on strong dollar and risk aversion in the global markets. Further, markets awaits Iran response on proposal amid ending the war and reopening of Strait of Hormuz.
• MCX Crude oil May is likely to hold the support near Rs 8400 level and rise back towards Rs 9200-Rs 9500 level as
• MCX Natural gas May is expected to rise towards Rs 270-Rs 275 level as long as it stays above Rs 250 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
