MCX Copper August is expected to rise towards Rs 1380 level as long as it trades above Rs 1350 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4030 level and rise towards $4160-$4200 levels on weak dollar and declining U.S treasury yields. Further, prices will find support on sharp decline in crude oil prices after Qatar said mediators were making progress in efforts to end the U.S.- Iran war. Additionally, investors are pricing in about a 57% chance of a rate hike compared to yesterday’s 63% for the month of September. Meanwhile, investors will keep an eye on U.S jobs data for further clarity about FED’s policy trajectory .
• MCX Gold October is expected to rise towards Rs 146,000, as long as it holds above Rs 142,500 level.
• MCX Silver September is expected to rise towards Rs 224,000 as long as it hold above Rs218,000 level. Only a move above Rs 224,000, it would turn positive and rise towards Rs 226,000 level
Base Metal Outlook
• Copper prices are expected to trade higher on weak dollar and easing geo-political concerns in Middle east Further, Codelco is temporarily halting work on its Andes Norte project at El Teniente, one of three major expansions designed to extend the mine’s life. Additionally, more than 200,000 tons of copper arrived at US ports in July, the largest monthly volume in IHS Markit shipping data dating back to 2014 ahead of expected decision on an import tariff by President Donald Trump. Moreover, falling global stocks in LME and SHFE would also support price.
• MCX Copper August is expected to rise towards Rs 1380 level as long as it trades above Rs 1350 level. Only a break above Rs 1380 level, it will rise towards Rs 1390 level
• MCX Aluminum August is expected to find support near Rs 340-Rs 341 level and rise towards Rs 352 amid supply concerns. MCX Zinc August is likely to hold support near Rs 381 level and rise towards Rs 394- Rs 396 level.
Energy Outlook
• NYMEX crude oil expected to face resistance near $80 level and dip towards $74 on growing hopes that US and Iran are moving to a deal to reopen the Strait of Hormuz. Additionally, Treasury Secretary Bessent hinted of a deal between U.S and Iran to happen in coming days. Saudi exports from the port of Yanbu in the Red Sea had its busiest day on Monday since Houthi rebels began attacking shipping in the region indicating further supply relief.
• On the data front, a strong call base near $80 strike would act as key hurdle for price. In MCX Crude oil August is expected to face resistance near Rs 7600 and dip towards Rs 7000 level.
• MCX Natural gas August is expected to face resistance near Rs 263- Rs 264 level and dip towards Rs 246- Rs 248 level.
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