MCX Copper May is expected to rise towards Rs.858 level as long as it stays above Rs.843 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Gold is expected to slip further towards $3190 level on strong dollar and rise in US treasury yields. Further, demand for safe haven may fade as US and China agreed to slash massive tariffs on each other for 90-days, a move to cool trade tension between 2 largest economies. This deescalation has surpassed investors expectations as many were expecting introductory round of talks with few agreements. Moreover, trade deal has given more space to US Federal Reserve to wait on cutting interest rates. The agreement has reduced the chance of economic slowdown in US. Meanwhile, all eyes will be on CPI data to get more clarity on interest rate outlook
* Spot gold is likely to slip further towards $3190 level as long as it stays below $3270 level. MCX Gold June is expected to slip towards Rs.91,800 level as long as it stays below Rs.93,700 level
* MCX Silver July is expected to rise back towards Rs.97,000 level as long as it trades above Rs.94,500 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias on optimistic global market sentiments and signs of improved demand from China . Yangshan copper premium, which reflects demand for copper imported into China, reached $101 per ton, indicating recovery in demand. Moreover, US and China agreed to lower trade tariffs on one another during a 90-day pause, increasing hopes that a full-scale trade war may have been averted that had stroked fears of recession. Likewise, better than expected fundamentals along with falling inventories would be supportive for the prices
* MCX Copper May is expected to rise towards Rs.858 level as long as it stays above Rs.843 level. A break above Rs.858 level prices may rise further towards Rs.862 level
* MCX Aluminum May is expected to rise towards Rs.240 level as long as it stays above Rs.235 level. MCX Zinc May is likely to move north towards Rs.256 level as long as it stays above Rs.250 level.
Energy Outlook
* NYMEX Crude oil is expected to trade with negative bias and slip towards $60.50 on strong dollar and concerns about oversupply. Planned increased of oil output by OPEC+ in May and June. Moreover, US President Donald Trump signaled positive progress in nuclear deal with Iran, raising expectations that sanctions on Iranian oil exports would be eased. Additionally, all eyes will be on developments on Russia-Ukraine talks in Turkey. Meanwhile, sharp fall may be cushioned as US and China agreed to lower tariffs temporarily, a move to cool trade tension between 2 largest economies and gave 3 more months to resolve differences
* MCX Crude oil June is likely to slip back towards Rs.5150 level as long as it stays below Rs.5400 level. A break below Rs.5150 prices may slide further towards ?5050 level.
* MCX Natural gas May is expected to slip back towards Rs.298 level as long as it stays below Rs.320 level.
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