MCX Gold prices are likely to move north towards 59,600

01-01-1970 12:00 AM | Source: ICICI Direct

MCX Gold prices are likely to move north towards 59,600 - ICICI Direct

News By Tags | #473 #3961

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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to hold the support near $1930 levels and rise back to $1960 levels on a weak dollar amid rising bets that the US Federal Reserve will hold rates unchanged at its much awaited policy decision due today. As per CME Fed watch tool, the market now sees more than 90% chance that the central bank will forgo a rate hike. However, more focus will be on guidance from central banks to get clues on the future rate trajectory

• MCX Gold prices are likely to move north towards 59,600 as long as they trade above 59,000 levels

• MCX Silver is expected to follow gold and rise towards 72,500 as long as it stays above 71700 level

Base Metal Outlook

• Copper prices are expected to hold to their gains on expectations that China may provide further stimulus to support the growth. China’s surprise cut of short-term rates increased bets that the central bank may announce adjustments to longer term rates to boost the economic recovery. Further, a soft dollar and rise in risk appetite in global markets may support copper prices

• MCX Copper is likely to hold the key support of 20 day EMA at 722 and rise towards the 200 day EMA at 735

• MCX aluminium is expected to consolidate between 203 and 205

Energy Outlook

• Crude oil prices are anticipated to extend their gain on Wednesday amid a weak dollar, improved global risk sentiments and on expectations of a drop in weekly US crude oil inventory. Further, prices may rally on hopes of growing fuel demand after PBOC lowered short-term lending rates

• MCX Crude oil is likely to hold the support near the | 5600 mark and is expected to rebound towards 5820. Above 5820, it can test 5900

• MCX Natural gas is expected to find support near | 187 and rise back towards | 196. Forecasts of a heatwave from June 21-28 in some parts of the US are likely to boost demand