Silver prices are expected to take cues from gold prices - ICICI Direct
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Bullion Outlook
• MCX gold prices edged lower by 0.20% on Monday amid optimistic sentiments in global markets
• At the same time, hawkish stance from the US Fed to cool down inflation dented demand for precious metals
• However, a sharp decline in dollar index along with retreat in 10 year US bond yields restricted further downsides in bullion prices
• MCX gold prices are expected to trade with a negative bias on prospects of aggressive monetary policy tightening by US Fed. MCX Gold price is trading below the mean levels of | 50,910. As long as it sustains below this level, it is likely to correct towards mean -2 sigma levels of | 50,300 in the coming sessions
• Silver prices are expected to take cues from gold prices and may move towards | 60,000 levels for the day
Base Metal Outlook
• MCX copper and other industrial metal prices declined on Monday as higher interest rates fuelled worries over a potential global recession and weaker demand for industrial metals, particularly in top consumer China
• China's refined copper production in May rose 4.70% year-on-year to 0.91 million tonnes, data from the National Bureau of Statistics showed on Friday
• The Chinese central bank kept its one-year loan prime rate (LPR) at 3.70% and the five-year LPR unchanged at 4.45%
• MCX copper prices are expected to correct towards | 728 levels for the day on expectation of disappointing existing home sales data from the US
Energy Outlook
• WTI crude oil prices rallied around 0.75% on Monday as investors focused on tight supplies despite slowing global economic growth
• Libya's oil production has remained volatile following blockades by groups in the country's east, with its output most recently pegged at 700,000 per day
• China's crude oil imports from Russia soared 55% from a year earlier to a record level in May, displacing Saudi Arabia as the top supplier amid sanctions on Moscow
• MCX crude oil prices (July Futures) are expected to trade in the consolidation range of | 8,300 to | 8,600 for the day due to slowdown in global economic may lower the fuel demand. However, concerns over tight supply will continue to support the oil prices on lower side
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