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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to hold the support near $2310 and move towards $2345 level amid increasing probability of rate cut in September. Last week’s softer inflation numbers and less than expected rise in retail sales numbers has overshadowed the hawkish comments of the fed members. Today, focus will remain on the BOE’s monetary policy. Meanwhile, higher OI concentration near 2350 and 2360 call strike could act as immediate resistance for price.

* MCX Gold Aug price is likely to move in the band of 71,300 and 72,100 with a bullish bias. But price has to move beyond 72,100 to bring fresh buying interest, else we expect more of a consolidation phase.

* MCX Silver July is expected to move higher towards 90,300, as long as it holds above 87,800. A move above 90,300, would open the doors towards 91,200.

Base Metal Outlook

* Copper prices are expected to hold its ground amid supply issues and softness in the dollar. Further, increasing prospects of more stimulus from China to support the struggling property sector would support the metal to regain its strength. PBOC has left the rates lower for longer time period to support the economic recovery. Additionally, an increase in orders from the copper fabricators last week indicated a sign of demand recovery in the metal. Meanwhile, rising inventories in both LME and SHFE warehouses would limit its upside.

* MCX Copper is expected to hold the support near 845 and move back towards the initial hurdle at 860. Above, 860 prices may rally towards 870 mark

* Aluminum is expected to hold the support near 230 and move higher towards 235. Only close below 230 it would turn weaker towards 228.

Energy Outlook

* Copper prices are expected to hold its ground amid supply issues and softness in the dollar. Further, increasing prospects of more stimulus from China to support the struggling property sector would support the metal to regain its strength. PBOC has left the rates lower for longer time period to support the economic recovery. Additionally, an increase in orders from the copper fabricators last week indicated a sign of demand recovery in the metal. Meanwhile, rising inventories in both LME and SHFE warehouses would limit its upside.

* MCX Copper is expected to hold the support near 845 and move back towards the initial hurdle at 860. Above, 860 prices may rally towards 870 mark

* Aluminum is expected to hold the support near 230 and move higher towards 235. Only close below 230 it would turn weaker towards 228.

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