MCX Copper April is expected to consolidate in the band of Rs 887 and Rs 902 - ICICI Direct
Bullion Outlook
Gold is expected to remain volatile in today’s session ahead of the key reciprocal tariff announcement from US. After rallying almost 19% in last 3- months, gold could hit a pause button amid profit booking. For the day $3150 level would act as key hurdle, where as $3100 would be considered as immediate support to prices. Meanwhile, weakness in the US dollar and US treasury yields could provide support to the yellow metal. Further, escalating global trade tension and recessionary fears would increase the safe haven appeal of the yellow metal.
• On the data front fresh addition of OI in OTM put strikes indicates gold to hold strong support near $3100 and on the upside immediate resistance exists near $3150 level. A move above $3150 would rise further towards $3170. MCX Gold June is expected to move in the band of Rs 90,300 and Rs 91,400 level. Only above Rs 91,400, it would turn bullish towards Rs 92,000.
• MCX Silver May is expected to rise further towards Rs 101,500 level as long as it trades above Rs 99,000 level. Below, Rs 99,000, it would slide to Rs 98,000.
Base Metal Outlook
• Copper prices are expected to remain under pressure amid risk-off sentiments. Meanwhile, focus will remain on the reciprocal tariff measure from US which could hurt global risk sentiments and hurt the demand outlook of base metals. Meanwhile, depleting inventory levels in LME and increasing bets of tariff on copper by US in coming weeks would limit its downside.
• MCX Copper April is expected to consolidate in the band of Rs 887 and Rs 902. Only break below Rs 887 level prices may dip further towards Rs 881.
• MCX Aluminum April is expected to slip further towards Rs 242 level as long as it stays below Rs 248 level. MCX Zinc April is likely to move south towards Rs 265 level as long as it stays below Rs 270 level
Energy Outlook
• NYMEX Crude oil is expected to hold its ground above $70 per barrel mark and rally towards $73 level on sign of tighter supplies. Increasing prompt spread in WTI as well as Brent futures indicates supply tightness. Further, improved crack spread has increased the chance of demand improvement from refiners. Additionally, US sanctions on Iranian oil and Trump’s threat for more sanctions would hurt the global supplies. Meanwhile, a sharp jump in API crude oil inventory last week would restrict any major up move in oil prices.
• On the data front, unwinding of OI in OTM put strike indicates profit booking. But a strong put base near 70 would act as key support to prices. MCX Crude oil April is likely to hold support near Rs 6000 level and rise towards Rs 6200 level.
• MCX Natural gas April is expected to trade lower towards Rs 328 level as long as it trades under Rs 354 level. Higher production and rise in inventory levels would weigh on prices. Further, forecast of milder weather would also dent demand outlook
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