MCX Copper April is expected to slip towards Rs.894 level as long as it stays below Rs.910 level - ICICI Direct
Bullion Outlook
* Gold is expected to move higher $3075 level on expectation of weakness in dollar and US treasury yields. Further, escalating global trade tension and weaker equity markets after US President Donald trump’s new auto tariff policies would increase the safe haven appeal of the yellow metal., Meanwhile, all focus will remain on key US core PCE price index data which could give further clarity on Fed’s interest rate trajectory. Any surprise gain in the number would restrict the upside move in the bullions.
* On the data front fresh addition of OI in OTM put strikes indicates gold to hold strong support near $3025 and on the upside immediate resistance exists near $3075 level. A move above $3075 would rise further towards $3100. MCX Gold April is expected to rise towards Rs.89,200 level as long it holds the support near Rs.88,000 level
* MCX Silver May is expected to rise further towards Rs.102,500 level as long as it trades above Rs.99,500 level. Above, Rs.102,500, it would open the doors towards Rs.104,500.
Base Metal Outlook
* Copper prices are expected to trade with negative bias on trade war concerns. Recent auto tariffs from US President Donald Trump has ignited the trade war concerns which could hurt demand prospects of the red metal. Further, investors fear that tit for tat approach increased the risk of broader global trade war, which may have adverse effect on economic growth denting demand for industrial metal. Meanwhile, depleting inventory levels in LME and increasing bets of tariff on copper by US in coming weeks would limit its downside. Moreover, increasing stimulus program from China would provide some support to the metal.
* MCX Copper April is expected to slip towards Rs.894 level as long as it stays below Rs.910 level. A break below Rs.894 level prices may dip further towards Rs.886.
* MCX Aluminum April is expected to slip further towards Rs.250 level as long as it stays below Rs.255 level. MCX Zinc April is likely to move south towards Rs.271 level as long as it stays below Rs.275 level
Energy Outlook
* NYMEX Crude oil is expected to trade with positive bias and rally further towards $71 level on sign of tighter supplies. The US sanctions on Iranian oil and oil exports from Venezuela has hurt the global supplies. Additionally, decline in US crude oil and fuel inventories signals strong demand. Meanwhile, market expects more Russian oil supply as they believe that US may give Moscow sanction relief after a deal was reached with Ukraine and Russia to pause attacks at sea and against energy targets. Rising prompt spread in NYMEX crude as well as Brent futures has signaled tightness in the market.
* MCX Crude oil April is likely to hold support near Rs.5880 level and rise towards Rs.6100 level. A break above Rs.6100 prices may rally further towards Rs.6150 level.
* MCX Natural gas April is expected to face stiff resistance near Rs.345 level and slip towards Rs.320 level.
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