MCX Copper June is expected to rise towards Rs1385 level as long as it stays above Rs1364 level - ICICI Direct
Bullion Outlook
• Spot Gold is likely to slip further towards $4400 level amid firm dollar and rise in US treasury yields. Further, prices may slip as renewed hostilities in Middle East may weaken the hopes of imminent resolution between the US and Iran and reignite inflation concerns and higher interest rates for prolonged time. Resumption of military strikes at a time when diplomatic talks between US and Iran remained stalled will sustain heightened anxiety. Iran launched ballistic missiles toward regional neighbors and in retaliation U.S. forces conducted strikes on Qeshm Island. Additionally, investors will remain cautious ahead of job data from US as to see whether economy remains resilient enough for Federal Reserve to hold rates steady or whether softening of labor market condition could revive the case for monetary easing. MCX Gold Aug is expected to slip further towards Rs157,400-Rs156,400 level as long as it stays below Rs161,000 level
• MCX Silver July is expected to dip towards Rs262,000-Rs260,000 level as long as it stays below Rs271,500 level.
Base Metal Outlook
• Copper prices are expected to trade with positive bias on renewed concerns about US import tariffs and tighter global supply. Investors are awaiting a recommendation from the US Department of Commerce by the end of the month on possible tariffs on imports of refined copper. Meanwhile, sharp upside may be capped on firm dollar and risk aversion the global markets. Market sentiments are hurt on stalled peace negotiations between US and Iran. Further, investors will remain cautious ahead of slew of economic data from major economies to gauge economic health and demand outlook.
• MCX Copper June is expected to rise towards Rs1385 level as long as it stays above Rs1364 level. Only a break below ?1364 level prices may be pushed towards Rs1357-Rs1352 level
• MCX Aluminum June is expected to rise towards Rs398-Rs400 level as long as its stays above Rs390 level. MCX Zinc June is likely to face stiff resistance near Rs376 level and slip towards Rs368-Rs366 level.
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