IGI Logo

The Week That Was

* Gold futures rose as Fed Chair Jerome Powell signalled the possibility of a September rate cut. The metal gained 1.2% for the week after trading sideways in recent sessions. Powell highlighted that a potential slowdown in the labour market could alleviate inflation concerns, despite tariff pressures. His comments shifted the policy outlook toward renewed easing. Markets now expect a 25 bps cut in September, boosting demand for non-yielding bullion.

* Silver jumped to $39 per ounce, nearing the 14-year high of $39.5 hit in late July, driven by expectations of Fed rate cuts and firm industrial demand. The Fed signalled a shift in risks toward a weaker labour market over inflation, reinforcing prospects of a 25 bps cut in September. Markets viewed the policy outlook as supportive for precious metals. On the industrial side, China’s solar cell exports surged over 70% in the first half of the year. Strong photovoltaic demand from India added further support to silver prices.

* WTI crude oil futures rose 0.2% to $63 per barrel on Friday, marking the first weekly gain in three weeks. Prices found support from heightened geopolitical risks as Russia launched fresh airstrikes and Ukraine targeted a refinery and key pumping station, disrupting Druzhba pipeline flows. Supply concerns were further amplified by a larger-than-expected 6 Mn barrel drop in US crude inventories. The draw highlighted resilient demand in the US market. Overall, volatility persists as traders balance supply disruptions with broader macroeconomic risks.

* Copper futures hovered around $4.45 per pound, holding near four-month lows as markets weighed US political developments. Sentiment was pressured after President Donald Trump criticised a federal appeals court ruling that temporarily blocked a key land transfer. The decision poses hurdles for Rio Tinto and BHP in advancing one of the nation’s largest planned copper mines. Meanwhile, supply reliance remains high, with the US importing 810,000 tons of unprocessed copper last year. That accounted for nearly 45% of the total domestic consumption of 1.8 Mn tons.

MCX Gold

Technical Outlook:

MCX Gold erased early losses and ended last week with a 0.50% gain, settling at its weekly high. The weekly price structure is forming higher highs and higher lows, indicating a sustained uptrend with buying interest on every dip. Prices are holding above the weekly RSI 60 level, reflecting underlying strength in momentum. A decisive breakout above Rs 1,01,000 could open the way for further upside towards Rs 1,03,000 – Rs 1,04,000. On the downside, strong support is placed at Rs 98,000, which is expected to act as a cushion for any corrective move.

Recommendation:

We recommend buying MCX Gold above Rs 1,01,000, with a stoploss below Rs 99,500 and targets of Rs 1,03,000 and Rs 1,04,000.

Current market price (CMP): Rs 1,00,38

MCX Silver

Technical Outlook:

MCX Silver ended last week on a strong note, gaining nearly 2%. The metal is now trading close to a key resistance at Rs 1,18,400. A sustained breakout above this level could trigger a rally towards Rs 1,22,000 – Rs 1,24,000 in the coming sessions. Momentum indicators support the bullish bias, with the MACD holding in a positive crossover and the daily RSI closing above 60, indicating fresh buying interest. On the downside, strong support is placed at Rs 1,10,000, which should act as a base for any corrective moves.

Recommendation:

We recommend buying MCX Silver above Rs 1,18,500, with a stop-loss below Rs 1,16,000 and targets of Rs 1,22,000 and Rs 1,24,000.

Current market price (CMP): Rs 1,17,600.

MCX Crude Oil

Technical Outlook:

MCX Crude Oil ended last week with a modest loss of about 0.50%. The commodity has been consolidating for the past few weeks within a broad range of Rs 5,400 to Rs 6,100. A strong support base has been established at Rs 5,400, with repeated failures to break below this level indicating buying interest on dips. Furthermore, prices are trading below the 200-DMA but managing to hold above the 100-DMA, reflecting an indecisive trend. Going forward, a breakout above Rs 5,800 could trigger fresh upside momentum towards the Rs 6,100 and Rs 6,300 levels.

Recommendation

We recommend buying MCX Crude Oil above Rs 5,800, with a stop-loss below Rs 5,600 and targets of Rs 6,100 and Rs 6,300.

Current market price (CMP): Rs 5,572

MCX Copper

Technical Outlook:

MCX Copper traded with volatility last week and closed with a loss of 0.60%. The metal has been consolidating in a broad range of Rs 860 to Rs 910 for several sessions, and a breakout on either side would provide a clear directional move. On the daily chart, prices are holding above both the 100-DMA and 200-DMA, which is a positive sign for the medium-term trend. A decisive breakout above Rs 910 could trigger strong buying momentum, opening the way for a rally towards the Rs 940 and Rs 950 levels.

Recommendation :

We recommend buying MCX Copper above Rs 910, with a stoploss below Rs 890 and targets of Rs 940 and Rs 950.

Current market price (CMP): Rs 888.

For More Axis Securities Disclaimer https://simplehai.axisdirect.in/disclaimer-home

SEBI Registration number is INZ000161633