MCX Copper may dip to Rs.1250 - Rs.1245 below Rs.1290 - ICICI Direct
Bullion Outlook
* Spot Gold is likely to face resistance near $4850 level and slip back towards $4700 level amid firm dollar and rise in US treasury yields. Further, prices may slip as renewed tension in Middle East and shaky prospect of peace deal between US and Iran, refueled concerns over rising inflation and monetary tightening across major economies. Strait of Hormuz had been closed again, less than 24hrs after it was reopened. US has sized an Iranian cargo ship that tried to run its blockade and President Doanld Trump has warned that US may hit infrastructure in Iran if Tehran does not make a deal. Meanwhile, sharp downside may be cushioned on renewed concerns over Fed independence after Trump threatened again to fire Fed Chair Powell. Traders will keep an eye on whether Kevin Warsh will be confirmed by the Senate to lead Fed, as he faces a confirmation hearing on April 21. MCX Gold June is expected to face stiff resistance near Rs.155,500 level and slip towards Rs.151,000- Rs.149,000 level.
* MCX Silver May is expected to slip towards Rs.254,000- Rs.250,000 level as long as it stays below Rs.263,000 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid firm dollar and weak global market sentiments. Market sentiments are hurt amid renewed tension between US and Iran. Additionally, closure of Strait of Hormuz has raised concerns over inflation and slowing global industrial activity, clouding metals demand. Meanwhile, sharp fall in the prices may be cushioned on prospect of stronger demand in China. Yangshan copper premium, a gauge of China's appetite for imported materials, stood at $69 a ton, signaling demand.
* MCX Copper April is expected to slip towards Rs.1250- Rs.1245 level as long as it stays below Rs.1290 level.
* Aluminium prices will continue to rise as global Aluminium market is facing a supply deficit this year due to the Iran war. MCX Aluminum April is expected to rise back towards Rs.370 level as long as its stays above Rs.358 level. MCX Zinc April is likely to face stiff resistance near Rs.345 level and slip towards Rs.337- Rs.335 level.
Energy Outlook
* NYMEX Crude oil is likely to trade with positive bias as tension in Middle East flared up again. Strait of Hormuz is closed again after both the parties US and Iran blamed each other for violating ceasefire deal by attacking ships. Moreover, Iran said it would not participate in 2 nd round of peace talks despite of US threat of renewed airstrikes on Infrastructure. Escalation in Middle East will revive geopolitical risk premium in prices. Furthermore, US has sized an Iranian cargo ship that tried to run its blockade while Iran has said that it would retaliate, raising risk of resumption of hostilities
* NYMEX crude oil is likely to rise back towards $92 level as long as it stays above $83. MCX Crude oil May is likely to rise back towards Rs.8300- Rs.8500 level as long as it stays above Rs.7500 level.
* MCX Natural gas April is expected to rise towards Rs.255- Rs.262 level as long as it stays above Rs.242 level.
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