MCX copper prices are expected to trade with a positive bias for the day due to expectations - ICICI Direct
Bullion Outlook
* Comex gold prices declined on Wednesday amid rise in US dollar index and hawkish comments from US Federal Reserve officials
* St. Louis Fed President James Bullard on Wednesday said the Fed would be steadfast in raising interest rates to bring inflation back to the central bank's 2% target
* Moreover, uptick in US 10 years bond yields and optimistic market sentiments in the US, pressurised bullion prices
* MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar index. It is likely to trade in downward trend towards the level of | 51,090 in coming session. Silver prices are expected to take cues from gold prices and may drop towards | 56,650 levels for the day
* Additionally, investors will remain cautious ahead of initial jobless claims data from the US
Base Metal Outlook
* LME copper prices tumbled on Wednesday amid flaring geopolitical tensions between the US and China
* Further, copper prices were pressurised by concerns over more interest rate hikes would depress global economic activity and dent demand for industrial metals
* However, sharp drop in base metals LME warehouse inventories and strong factory orders data from the US, prevented further gains
* New orders for US manufactured goods jumped 2% MoM in June of 2022, extending the upwardly revised 1.8% rise in May and well above market forecasts of a 1.1% increase, reflecting strong demand for products
* MCX copper prices are expected to trade with a positive bias for the day due to expectations of stimulus package from China
Energy Outlook
* WTI crude oil prices edged down almost 3.00% on Wednesday as US crude and gasoline stockpiles unexpectedly surged higher
* US commercial crude oil inventories increased to 426.60 million barrels from 422.10 million barrels over the past one week
* At the same time, crude oil prices were pressurized as ministers for the Organization of the Petroleum Exporting Countries (Opec) and allies including Russia, known as Opec+ agreed to the small increase to the group's output target, equal to about 0.1% of global oil demand
* MCX crude oil prices are expected to trade with a negative bias for the day amid expectations of rise in crude oil production from Algeria. It is likely to break the hurdle of | 7160 to continue its downward trend towards the level of | 7080
* Additionally, investors will remain vigilant ahead of natural gas inventory data from the US
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
Above views are of the author and not of the website kindly read disclaimer
