MCX Copper is expected to weaken further towards 692 levels - ICICI Direct
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Metal’s Outlook
Bullion Outlook
• Spot gold is likely to move in the range of $1810-1833 ahead of key US Non-farm payroll data. Any surprise gain in the US job numbers would weaken the yellow metal towards the multi month support at $1800. The US unemployment rate is expected to improve towards 3.7% and the earning growth also seems to improve in the previous month.
• MCX Gold prices is likely move inside the range of 56300 and 57100. Only a move below 56300 would open the doors towards 56,000 level. On the flip side a move above 57100, it may rise towards 57400.
• MCX Silver holds major support at 66400. A move below would weaken it towards 65500. On the upside 67800 would act as key resistance.
Base Metal Outlook
* Copper prices are expected to remain under pressure amid risk aversion in the global markets. Further higher inventory levels at LME registered warehouses and subdued demand in the physical markets amid holiday weekend in China would also weigh on the metal to trade lower. Meanwhile, investors will focus on the key US jobs data, which may bring more clarity on the future path of the interest rate cycle.
* MCX Copper is expected to weaken further towards 692 levels as long as it trades below 705 levels
* MCX aluminium is expected to move downward to 203 level as long as it stays below resistance level of 208 level
Energy Outlook
• NYMEX Crude oil is expected weaken further towards $80, as long as it trades under the $85 level amid growing concerns over demand. The weakness in crude oil crack spread to a 20-month low has pushed the refiners on the back seat to purchase oil for refining. Further, higher borrowing cost for longer period will hurt the global growth outlook and weaken the oil demand. Meanwhile, investors will remain cautious ahead of the key US job report.
• MCX Crude oil is likely to move towards 6800 level as long as its sustains below 7150 levels
• MCX Natural gas is expected to find support near 258 and extend its gains towards 272 level amid forecast of cool weather in eastern states of US over the next 10 days.
