MCX copper prices traded flat yesterday despite expectations of better metals demand - ICICI Direct
Bullion Outlook
• MCX gold prices edged lower on Tuesday as bond yields surged and the US dollar traded at a 20-year high
• Further, strong economic data from the US pressurised bullion prices
• MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar. It is likely to break the support of | 50,200 to touch the level of | 50,000 in the coming session
• Additionally, investors will stay vigilant ahead of key economic data from the US
MCX Gold vs Silver Performance
Base Metal Outlook
• MCX copper prices traded flat yesterday despite expectations of better metals demand after Chinese policymakers said they would accelerate infrastructure investment
• Further, copper prices were supported as copper output in July fell 6.6% YoY to 195,234 tones after two of the country's largest mines underperformed
• We expect copper prices to trade with a positive bias for the day amid expectation of infrastructure investment from the Chinese government
MCX Copper vs. Aluminum Performance
Energy Outlook
• MCX crude oil prices fell on Tuesday as concerns returned about the prospect of more interest rate hikes and Covid-19 lockdowns weakening fuel demand
• However, the Organization of Petroleum Exporting Countries and allies led by Russia, known as Opec+, decided on Monday to cut their October output target by 100,000 barrels per day, prevented further downside
• We expect MCX crude oil prices to trade with a negative bias for the day on expectations of aggressive interest rate hike may dent fuel demand
MCX Crude Oil vs. Natural Gas Performance
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