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Metal’s Outlook

Bullion Outlook.

* Gold is likely to extend it gains towards $1930 amid softness in the dollar and retreat in US treasury yields. The weaker set of economic numbers from US has raised the bets that the Fed will pause its rate hike campaign. Today, the focus will be on weekly US jobless claims numbers, where as the main focus shifts to this week’s Jackson Hole meeting

* MCX Gold futures is expected to 59000, as long as it trades above 58400. Only a move above 59000 it would test 59200. On the flip side below 58400, 58250 would act as major support

* MCX Silver is expected to extend its gains towards 74800, as long as it holds above 73000.

Base Metal Outlook

* Copper prices are expected to rise again amid hopes of more support measures from the top metal consumer China and weaker dollar. Further, the improved risk appetite amid diminishing fear of further rate hike by major central banks would also support the bullish bias in the red metal

* MCX Copper is likely to hold the support near 734 and extend the rally towards 745.

* MCX aluminium is likely to hold its ground near 197 and move back towards the immediate resistance at 200. A move above 200 would open the doors towards 202.50.

Energy Outlook

* NYMEX Crude oil is expected to face the hurdle near $80 mark and slip towards the $77.40 mark on signs of improved supply and weak US fuel demand. The rise in gasoline and distillate inventories over the past week has indicated that peak summer season demand is about to over. Further, weaker manufacturing activity in US and Europe could also weigh on the energy demand. Meanwhile, softness in the dollar could provide some help to the oil price to hold above the $77.40.

* MCX Crude oil is likely to weaken towards 6450, as long as it trades under 6670. Only a move above 6670 it would rise towards 6800.

* MCX Natural gas September future is expected to remain under pressure and weaken towards 210 amid forecast of cooler weather US.

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