MCX Aluminum August is expected to face resistance near Rs 352 level and dip towards Rs 342 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to face resistance near $4420 and dip towards $4300 level on firm dollar and rising U.S treasury yields. Further, surge in crude oil prices has raised inflation concerns and may add pressure on Fed to tighten monetary policy. Meanwhile, prices will find support from renewed investor demand and central bank buying, notably from China. U.S Exchange-traded funds added 34,870 troy ounces of gold to their holdings in last trading session. Investors will keep an eye on minutes of Fed’s policy meeting for further clarity
• MCX Gold October is expected to face resistance near Rs 156,500 and dip towards Rs 152,500 level.
• MCX Silver September is expected to move in a wide range between Rs 228,000 and Rs 236,000 level. Only a move below Rs 228,000, it would dip towards Rs 225,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower as sudden surge of metal into warehouses eased concerns of physical tightness. Further, London Metal Exchange's global warehouse network posted the biggest increase in readily-available copper inventories since April. Meanwhile, prices may find cushion as concerns over tightening supply continued to underpin prices amid expectations for constrained global mine output. Investors are awaiting the official announcement regarding U.S. tariffs on imported refined copper.
• MCX Copper August is expected to face resistance near Rs1380 level and dip towards Rs 1360 level. Only a move below Rs 1360 level, it will dip towards Rs 1355 level.
• MCX Aluminum August is expected to face resistance near Rs 352 level and dip towards Rs 342. MCX Zinc August is likely to face resistance near Rs 400 level and dip towards Rs 392- Rs 394 level..
Energy Outlook
• NYMEX crude oil expected to find support near $82 level and rise towards $87 amid growing concerns over supply disruptions. Further, Iran fired two ballistic missiles toward the Strait of Hormuz on Tuesday, triggering air defenses in the UAE. Further, Donald Trump said he is not interested in extending the expiring agreement with Iran, dimming prospects for a swift reopening of the Strait of Hormuz. Meanwhile, investors will keep an eye on U.S crude oil weekly inventory for further cues.
• MCX Crude oil September is expected to find support near Rs 7800 and rise towards Rs 8300 level.
• MCX Natural gas August is expected to find support near Rs 255 level and rise towards Rs 270 level. Escalating geopolitical tension in the Middle East would likely to provide support to energy prices.
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