Aluminum May future is expected to hold the support near 230 and rebound towards 238 - ICICI Direct
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Bullion Outlook
* Spot gold is expected to extend its rally beyond $2354 and move towards $2374 amid softness in the US dollar and treasury yields. Weaker than expected US jobless claims data has indicted slight weakness in the job market, which could force the Fed to cut the rates earlier than anticipated. Further, forecast of decline in US consumer sentiments would also force the Fed members to change their hawkish tone. Later in the day focus will remain on comments from the Fed member Bowman and Barr, which could give more clarity on the Fed rate path
* MCX Gold June is expected to rise towards 72200, as long as it holds above 71400. A move above 72200 would open the doors towards 72700.
* MCX Silver July is expected to hold the support near 83400 and move towards the initial hurdle at 85000. Above 85000 it would extend its rally towards 86200.
Base Metal Outlook
* Copper prices are expected trade higher amid depleting stocks and tight supplies. Further, improvement in last months trade balance numbers raised the hopes that recent Government measures from China would increase the demand of the metal. More measures for improvement in China’s housing sector and strong demand growth from the renewable energy would strengthen bullish bets on the metal. Now investor will focus on weekends key CPI and PPI numbers which is expected to improve and support the metals to trade higher.
* For the day MCX Copper May is likely to hold the support of 10 day EMA at 854 and move higher towards 868. Only a move above 868, it would rise towards 872.
* Aluminum May future is expected to hold the support near 230 and rebound towards 238.
Energy Outlook
* NYMEX Crude oil is expected hold the support at $78 and move towards $81 on expectation of economic recovery in China. Further, halt of negotiations between Israel and Hamas would also support the oil prices to extend its rally. Moreover softness in the dollar amid renewed bets of early rate cut by the Federal Reserve would also help the oil prices to trade higher.
* MCX Crude oil May future is expected to hold support near 6500 and move towards the initial hurdle at 6700. A move above 6700, would open the doors towards 6800.
* Natural Gas prices are expected to extend its gains amid Summer demand and decline in production. Increase in electricity output is positive for far natural gas demand from the utility providers. MCX Natural gas May futures is expected hold the support of 5day EMA at 183 and move towards 200.
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