MCX Aluminum September is expected to move higher towards Rs.255, as long as it trades above Rs.250 level - ICICI Direct
Bullion Outlook
* Spot Gold is likely to move higher towards $3400 amid soft dollar and weakness in the US treasury yields. Increasing prospects of 2 rate cuts by the US Federal Reserve in this year after dovish comments from the US Fed chair would support the bullions to trade higher. Further, precious metals continue to seek support from geo-political uncertainty and higher US tariffs. Additionally, fund buying will continue to support prices as gold ETFs rose to 2-year high last week and silver holdings in ETFs reached 3-year highs.
* Spot Gold is expected to hold the support at $3345 and move higher towards $3400 MCX Gold October is expected to rise towards Rs.101,200 as long as it remains above Rs.99,700 level.
* MCX Silver Sep is expected to rise towards Rs.117,200 as long as it holds above Rs.115,500 level. A move above Rs.117,200 it would rally towards Rs.118,400.
Base Metal Outlook
* Copper prices are expected to hold its ground and move north on improved risk sentiments and growing probability of loose monetary policy from the US Federal Reserve. Further, improved manufacturing activity in US and Europe and hopes of fresh round of stimulus from China would bring positivity in price. Meanwhile, tariff concerns and rising inventory levels would likely restrict any major up move in the metal prices. Today, we may see a tight move in the base metal pack as LME market remains closed on the eve of the Summer bank holiday.
* MCX Copper September is expected to hold its ground and move higher towards Rs.894, as long as it trades above Rs.880 level.
* MCX Aluminum September is expected to move higher towards Rs.255, as long as it trades above Rs.250 level. MCX Zinc September is likely to hold the 50-day EMA at Rs.265 and rebound towards Rs.271 level.
Energy Outlook
* Crude oil is likely to rebound towards $65 per barrel on supply risk and uncertainty over Russia-Ukraine peace talks. US has threatened to double tariffs on all imports from India to 50% in retaliation for continued purchases of Russian crude, fueling concerns over potential supply disruptions. Addition to that, stalled Russia-Ukraine peace talks and recent attacks has heightened fears of supply disruption. Moreover, improved risk sentiments amid higher rate cut bets by the Fed would support oil prices.
* On the data front, 60 put strike has higher OI concentration which would act as key support. On the upside 65 call strike, has higher OI concentration, which would likely to act as immediate hurdle. MCX Crude oil September is likely to hold the support at Rs.5480 and rise towards Rs.5620 level. Only a move above Rs.5620 it would rise towards Rs.5720.
* MCX Natural gas September future is likely to slide toward Rs.236, as long as it trades under Rs.254.
https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
