Copper prices are expected to trade with negative bias amid firm dollar - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is likely to rise back towards $4650 level as softening of crude oil prices calmed fears about inflation and need for monetary tightening across major economies. Further, prices may move higher as Iran said it is reviewing US response to its latest 14-pont proposal, boosting hopes for diplomatic solution to the conflict. Meanwhile, sharp upside may be capped on strong dollar and rise in US treasury yields. Furthermore, investors will also remain cautious ahead of slew of economic data from US to gauge economic health of the country and speeches from Fed officials to get clarity on interest rate trajectory
* MCX Gold June is expected to hold support near Rs150,000 level and rise towards Rs152,500-Rs153,500 level.
* MCX Silver July is expected to rise towards Rs255,000-Rs257,000 level as long as it stays above Rs245,000 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid firm dollar. Furthermore, persistent rise in inventory at LME registered warehouses would weigh on prices. Additionally, investors fear that renewed trade conflict between US and Europe will hurt global economic growth and dent demand for industrial metal. Meanwhile, sharp fall in the prices may be cushioned on prospect of stronger demand in China. Yangshan copper premium, a gauge of China's appetite for imported materials, stood at $64 a ton, signaling demand
* MCX Copper May is expected to slip towards Rs1265 level as long as it stays below Rs1295 level. A break below Rs1265 level prices may be pushed towards Rs1260-Rs1255 level
* MCX Aluminum May is expected to rise towards Rs 373-Rs 375 level as long as its stays above Rs 366 level. MCX Zinc May is likely to face stiff resistance near Rs346 level and slip towards Rs 338 level
Energy Outlook
* NYMEX Crude oil is likely to trade with negative bias amid strong dollar. Further, prices may slip after U.S. President Donald Trump said the US would begin an effort to free up ships stranded in Strait of Hormuz. OPEC+ said they will increase oil output by 188,000 barrels per day in June, marking third consecutive month. However, this higher volume will remain largely on paper until war ends and oil supplies through strait of Hormuz resumes. Meanwhile, sharp fall in the prices may be cushioned as supply concerns still linger amid lack of US-Iran peace deal. Both the countries are assessing the responses and refused to move on their respective red line.
* MCX Crude oil May is likely to slip towards Rs9400-Rs 9250 level as long as it stays below Rs 10000 level.
* MCX Natural gas May is expected to rise towards Rs 270-Rs 273 level as long as it stays above Rs 255 level..
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
