Copper prices are expected to trade with a positive bias on weak dollar and optimistic global market sentiments - ICICI Direct
Bullion Outlook
* Spot Gold is likely to rise further towards $3520 level on weak dollar and softening of U.S treasury yields. Additionally, prices may move north buoyed by U.S. Federal Reserve rate cut bets. Investors expect U.S Fed to prioritize supporting a weakening labor market despite concerns over lingering inflationary pressures. Further, demand for safe haven may increase on escalating geopolitical tension in Eastern Europe, uncertainty over U.S trade policies and concerns about independence of U.S Federal Reserve. Meanwhile, all eyes will be on slew of economic data from U.S to see the extent to which Trump's policies are affecting industrial activity and the labor market and get fresh clues on rate trajectory
* Spot Gold likely to rise towards $3520 level as long as it holds the support near $3460 level. MCX Gold Oct is expected to rise further towards Rs.105,500 level as long as it stays above Rs.104,000 level
* MCX Silver Dec is expected to rise towards Rs.125,500 level as long as it trades above Rs.123,000 level.
Base Metal Outlook
* Copper prices are expected to trade with a positive bias on weak dollar and optimistic global market sentiments. Further, improved economic data from China and signs of tightening supply would be supportive for the prices. Additionally, expectation of monetary easing would prove positive for the industrial metals as lower borrowing cost tends to stimulate economic activity. Meanwhile, Investors will remain cautious ahead manufacturing pmi data from U.S.
* MCX Copper Sep is expected to rise back towards Rs.905 level as long as it stays above Rs.895 level. Only a break below Rs.895 level prices may witness weakness and slip towards Rs.890 Level
* MCX Aluminum Sep is expected to rise towards Rs.256 level as long as it stays above Rs.253 level. MCX Zinc Sep is likely to move north towards Rs.275 level as long as it stays above Rs.271 level.
Energy Outlook
* Crude oil is likely to trade with positive bias and rise towards $65.50 level on weak dollar and rise in risk appetite in the global markets. Further, prices may rally on mounting concerns over supply disruption as conflict between Russia and Ukraine intensified. According to media reports recent Ukrainian drone attacks shut down facilities accounting for at least 17% of Russia’s oil processing capacity. Meanwhile, sharp upside may be capped as investors will keep a close eye on OPEC+ meeting scheduled on 7 th September to get any cues on further output hikes.
* WTI crude oil is likely to rise towards $65.50 level as long as its trades above $64. A break above $65.50 prices may rally further towards $66.30 level. MCX Crude oil Sep is likely to rise towards Rs.5850 level as long as it stays above Rs.5600 level.
* MCX Natural gas Sep is expected to dip towards Rs.252 level as long as it stays below Rs.268 level.
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