Copper prices are expected to hold its ground and rebound onexpectation of strong growth numbers in US - ICICI Direct
Bullion Outlook
* Spot Gold is likely to take a pause in its rally and stay under $3400 perounce mark on expectation of strong US economic numbers. Better thanexpected US preliminary GDP numbers could lower the prospects of ratecut and restrict the up move in the bullions. Meanwhile, geo-politicaluncertainty, US political ambiguity and concerns over Fed independencewould provide support to the yellow metal. Additionally, fund buying willcontinue to support prices as gold ETFs rose to 2-year highs last weekand silver holdings in ETFs reached 3-year highs.
* Spot Gold is expected to face stiff resistance near $3400 and move lowertowards $3350 . Only a sustained move above $3400 would open thedoors towards $3450. MCX Gold October is expected to face the hurdlenear Rs.102,000 and move back towards Rs.100,200 level.
* MCX Silver Dec is expected to rise towards Rs.117,600 as long as it holdsabove Rs.116,000 level. Only a move below Rs.116,000 it would turnweaker towards Rs.115,200.
Base Metal Outlook
* Copper prices are expected to hold its ground and rebound onexpectation of strong growth numbers in US. Further, growingprobability of loose monetary policy from the US Federal Reserve wouldalso support the base metals to regain its strength. Meanwhile, tariffconcerns and rising inventory levels would restrict any major up movethe metal prices.
* MCX Copper September is expected to hold its ground and move highertowards Rs.892, as long as it trades above Rs.880 level. Only below Rs.890, itwould turn weaker towards Rs.875.
* MCX Aluminum September is expected to move in the band of Rs.251 and Rs.255 level. Only below Rs.251 it would turn weaker towards Rs.248. MCXZinc September is likely to hold the 50-day EMA at Rs.263.50 and reboundtowards Rs.269 level.
Energy Outlook
* Crude oil is likely to hold its ground and move higher on supply risk anduncertainty over Russia-Ukraine peace talks. Crude prices may find supporton concern that the Russian-Ukrainian war will continue, which could keeprestrictions on Russian crude exports in place, and even secondary restrictionscould be added. US has threatened to impose additional tariffs on Russia’strading partners or fresh sanction on Russia could be imposed if no progressis made towards a peace deal. Moreover, better than expected US economicnumbers and higher rate cut bets by the Fed would support oil prices.
* On the data front, 60 put strike has higher OI concentration which would actas key support. On the upside 65 call strike, has higher OI concentration,which would likely to act as immediate hurdle. Above $65 it would risetowards $66.50. MCX Crude oil September is likely to hold the support at Rs.5480 and rise towards Rs.5720 level.
* MCX Natural gas September future is likely to slide toward Rs.245, as long as ittrades under Rs.260.
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