MCX Silver is expected to rise back towards 72,500 level as long as it sustains above 71,500 level

09-08-2023 09:59 AM | Source: ICICI Direct

MCX Silver is expected to rise back towards 72,500 level as long as it sustains above 71,500 level - ICICI Direct

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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to rise towards $1935 levels as long as it sustains above $1910 levels amid retreat in dollar and US treasury yields. Further, investors will remain vigilant ahead of US Fed policymakers comments to get cues on interest rate outlook. As per CME Fed Watch tool investors now see a 92% chance of Fed holding its rate steady in September meeting while, more than 50% chance of Fed delivering another rate hike in November

* MCX Gold prices is likely to move north towards 59,300 level as long as it trades above the support level of 58,800 levels

* MCX Silver is expected to rise back towards 72,500 level as long as it sustains above 71,500 level

Base Metal Outlook

* Copper prices are expected to trade with negative bias amid swelling copper inventories at LME registered warehouses and weak global market sentiments. Copper inventories have jumped 21% to 133,850 metric tons, highest level since October. Further, disappointing economic data from China and Euro Zone has fueled the concern over slowdown in global economic growth. Additionally, data showed China’s copper imports declined in August, hit by faltering economy and depressed demand while boost in domestic producer output

* MCX Copper may slip further towards 723 levels as long as it trades below 730 levels

* MCX aluminium is expected to face hurdle near 201.65 level (200-Day EMA) and slip back towards 200 level

Energy Outlook

* NYMEX Crude oil is expected to slip towards $85.50 as long as it trades below $87 level on fears that slowdown in global economic growth will dent fuel demand. However, sharp downside may be cushioned amid retreat in US dollar and on fears over tightening supplies. Additionally, bigger than expected draw in US crude oil inventories may lend support to prices

* MCX Crude oil is likely to slip back towards 7100 level as long as its sustains below 7300 levels

* MCX Natural gas is expected to move upwards towards 225 level as long as it stays above 210 level on smaller build in weekly inventories. EIA inventoriesrose 33bcf, below expectations of 41bcf