MCX Copper May is expected to move in the band of Rs1325-Rs1350 level with a negative bias. - ICICI Direct
Bullion Outlook
• Spot Gold is likely to remain under pressure and move towards $4425 amid strong dollar and rising global treasury yields. Additionally, rising U.S.–Iran tensions have raised inflation risks and the likelihood of higher interest rates. US President Donald Trump warned that U.S. could resume military strikes within 'two or three days' if Iran rejects its peace terms. Any sign of further escalation in the region will push oil prices higher. According to the latest CME FedWatch Tool, the probability of a 25-bps rate hike has jumped to 60% due to persistent inflation concerns.
MCX Gold June is expected to move in the range of Rs157,000-?160,500 with negative bias. Only a move below Rs157,000 it would slip towards Rs155,000.
• International Spot Silver is hovering around key support at $73 per ounce mark. A move below $73 would trigger selling pressure in the metal towards $70-$66 zone. MCX Silver July is expected to trade in a wide range of Rs265,000-Rs276,000. Only a move below Rs265,000 it would slide to Rs260,000.
Base Metal Outlook
• Copper prices are expected to face hurdle and move lower amid strong dollar and weak economic numbers from China. Further, U.S.-Iran tensions and higher oil prices have increased fears of persistent inflation and stricter monetary policy, which could hurt global growth and industrial demand. Moreover, growing prospects of higher US interest rates would weigh on price. Meanwhile, a steady Shanghai Yangshan copper premium which stands at $71 per metric ton, could limit its downside.
• MCX Copper May is expected to move in the band of Rs1325-Rs1350 level with a negative bias. Only a move below Rs1325 , it would slip towards Rs1314 level.
• MCX Aluminum May is expected to hold its ground near Rs378-?379 level and move towards Rs385-?386 level. MCX Zinc May is likely to dip towards Rs360 as long as it stays under Rs368-?370 level. Only a move below Rs360 it would slip towards Rs355.
Energy Outlook
• NYMEX Crude oil prices are likely to hold its gains and move higher on escalating geopolitical tensions as US President warned to attack again if Iran rejects its peace terms. Prices would also get support on depleting inventory levels in US. Latest, API data showing a sharp 9.1-million-barrel draw in U.S. crude inventories last week, compounding the previous week's decline of 2.19 million barrels. Additionally, record weekly drawdown of 9.9 million barrels from US SPR indicates depleting inventory levels which would keep prices elevated. Meanwhile, investor will eye on weekly EIA inventory data which could bring further volatility in price
• MCX Crude oil June is likely to rise towards Rs10500 level as long as it holds above Rs9800 level.
• MCX Natural gas June is expected to rise towards Rs325-?328 level as long as it holds above Rs305-?308 level.
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