MCX Copper is likely to face the hurdle near 726 and weaken towards 720 - ICICI Direct
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Metal’s Outlook
Bullion Outlook.
* Spot gold is expected remain under pressure and weaken towards the next support level near $1880 amid strong dollar and rise in the US treasury yields. The hawkish FOMC minutes along with better economic numbers from US could force the Fed to keep its monetary policy tight for longer period. Meanwhile, investors will focus on the weekly initial jobless claims numbers and manufacturing index to get more clues on the direction.
* MCX Gold futures is expected to weaken towards 58200, as long as it trades under 59000.
* MCX Silver is likely to face the hurdle near 70500 and weaken towards 69200 levels.
Base Metal Outlook
* Copper prices are likely to remain under pressure amid strong dollar and sluggish demand from top consumer China. The slowdown in the property market and persistence rise in inventories at LME registered warehouse could also restrict the upside in the metal prices. Further, hawkish FOMC minutes also raised the bets that the Fed will keep the rates higher for longer duration
* MCX Copper is likely to face the hurdle near 726 and weaken towards 720. Only a move below 720 it would open the doors towards 716 level
* MCX aluminium is expected to weaken towards 195, as long as it trades under the 199 mark.
Energy Outlook
* NYMEX Crude oil is expected to weaken towards $78 mark as long as it trades under the 20 day EMA at $81. The sluggish economic recovery in China and the strong dollar following the hawkish Fed minutes would act as key factors for weakness in oil prices. However tight supplies from OPEC nations could limit more downside in prices
* MCX Crude oil is likely to weaken towards 6500, as long as it trades under 6800 level. .
* MCX Natural gas is expected to weaken towards 210, as long as it trades under 20 day EMA at 221. However, expectation of drawdown in inventories could provide some relief to the prices.
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