MAX Gold June is expected to move in the band of Rs155,600 to Rs160,000 with a positive bias.- ICICI Direct Ltd
Bullion Outlook
• Spot Gold prices are likely to extend its rebound towards $4580 amid softer dollar and correction in the US treasury yields. Growing optimism over peace agreement between US-Iran for 60 days would ease inflation concerns and lower the probability of interest rate hike from the US Federal reserve. As per the CME Fed watch toll, this year rate hike probability for this year has come below 50%. Meanwhile, investors will eye for confirmation of the deal to get further clarity. Moreover, focus will also remain on key US PPI data to get further cues on inflation.
• MCX Gold June is expected to move in the band of Rs155,600 to Rs160,000 with a positive bias. Only a move above Rs160,000 it would rise towards Rs162,000. On the downside Rs155,600 ( 20 DEMA) holds as key support.
• MCX Silver July is expected to trade in a wide range of Rs265,000- Rs276,000. Only a move above Rs276,000 it would move towards Rs280,000 to Rs282,500 range.
Base Metal Outlook
* Copper prices are expected to hold its ground and move higher amid softer dollar and improved risk sentiments. Further, strong industrial demand and supply concerns would strengthen demand outlook. Moreover, steady Shanghai Yangshan copper premium at $70 per metric ton indicates resilient physical appetite from China, which might provide support to prices.
* MCX Copper June is expected to move towards Rs1370, as long as it holds above Rs1348. Only a move above Rs1370, it would rise towards Rs1380 level.
* MCX Aluminum June is expected to take a pause in its rally and move towards Rs380-Rs382 level. Only a move above Rs390-Rs392 level it would turn bullish. MCX Zinc June is likely to hold above Rs365 and move towards Rs375-Rs378 level. Only a move below Rs365 it would slip towards Rs360- Rs358.
Energy Outlook
* NYMEX crude oil prices are expected to trade lower on easing geopolitical tension in the Middle east. Risk premiums in oil prices will erode as the US and Iran are on the verge of ending the conflict. Investors will await final confirmation from US President Donal trump on the US-Iran pact. A final confirmation would bring the US and Iran closer to reopening normal maritime traffic through the Strait of Hormuz which holds the key to nearly 20% of global oil supplies.
* MCX Crude oil June is likely to move in the band of Rs8300 to Rs8900 with negative bias. Only a move below Rs8300 it would correct further towards Rs8000- Rs7800 levels.
* MCX Natural gas June is expected to face resistance near Rs320-Rs322 level, and move back towards Rs300 level.
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