MCX gold prices are likely to trade with a negative bias and stay below its key support level - ICICI Direct
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Bullion Outlook
• Comex gold prices retreated 1 % on Monday as dollar hovered near two -decade highs
• Growing concerns over slowing global economic growth and rising interest rates strengthened dollar as investors searched for safety
• Meanwhile, 10 -year US treasury yields retreated from 3 .20 % highest since November 2018
• MCX gold prices are likely to trade with a negative bias and stay below its key support level at ₹ 50 ,950 . As the gold price is trading below its 200 day moving average, it can be difficult for the gold prices to sustain above ₹ 51 ,500 levels . Silver prices are also expected to take cues from gold prices and may dip further to ₹ 61,100 level
Base Metal Outlook
• London copper prices fell to its lowest in nearly five months on Monday, as tightening lockdowns in top metals consumer China stoked worries about demand, with a firm dollar further weighing on the market.
• Moreover, The dollar remained firm near a 20-year high against its rivals, making greenback denominated metals more weaker.
• Aluminium prices fell around 2.60% to four months low as concerns over slowing global manufacturing growth and firm dollar index pushed aluminium prices lower.
• MCX copper price is likely to stay under pressure and touch its key support level at ₹ 748 level today, as higher inventory levels and strong dollar will continue to pressurize copper prices.
Energy Outlook
• WTI crude oil prices slipped below 6.40% on Monday after Saudi Arabia lowered its price for Asian customers on weak Chinese demand due to Covid-19 lockdowns in the country
• Moreover, Saudi Arabia lowered its official selling June price for Asian customers to a premium of US$4.40 per barrel over from a US$9.35 premium in May. The drop in prices came due to Russia selling oil to Asian market at a cheaper rate
• Natural gas prices retreated back under the US$8.00 mark on Monday, falling back from 14-year highs despite cooling demand from south due to hot weather
• MCX crude oil prices are expected to trade with a negative bias towards ₹ 7620 levels amid concerns over Saudi Arabia lowering its oil prices to maintain its market share
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