MCX Copper May is expected to rise towards Rs1305 level as long as it stays above Rs1275 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to rise further towards $4680 level on weakness in dollar and softening of US treasury yields. Further, prices may slip on signs of de-escalation in Middle East and as U.S. signaled it may be nearing a deal with Iran. Additionally, US President Donald Trump said he would briefly pause an operation to help escort ships through the Strait of Hormuz, as he believes a peace deal with Iran is close. Meanwhile, 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 June is expected to hold the support near Rs148,500 level and rise towards Rs152,000-Rs 153,000 level.
• MCX Silver July is expected to rise towards Rs252,000-Rs 255,000 level as long as it stays above Rs 241,000 level
Base Metal Outlook
• Copper prices are expected to trade with positive bias amid weak dollar and rise in risk appetite in the global markets. Market sentiments improved as US and Iran refrained from escalating situation following fresh strikes, easing inflationary concerns. Additionally, prospect of stronger demand in China would be supportive for the prices. Yangshan copper premium, a gauge of China's appetite for imported materials, stood at $64 a ton, signaling demand. Meanwhile, investors fear that renewed trade conflict between US and Europe will hurt global economic growth and dent demand for industrial metal.
• MCX Copper May is expected to rise towards Rs1305 level as long as it stays above Rs1275 level. A break above Rs1305 level prices may be pushed towards Rs1310 level
• MCX Aluminum May is expected to rise towards Rs378-Rs380 level as long as its stays above Rs369 level. MCX Zinc May is likely to hold support near Rs342 level and rise towards Rs348-Rs350 level
Energy Outlook
• NYMEX Crude oil is likely to trade with negative bias on signs of deescalation in Middle East and as U.S. President Donald Trump indicated a possible peace deal to end the war with Iran may be reached. His statement led to the expectations that supply from Middle East producing region could resume, easing supply concerns. Meanwhile, sharp fall in the prices would be cushioned as closure of Strait of Hormuz has drawn down global inventories. As per API report U.S. crude oil inventories fell for a 3 rd week, while gasoline and distillate stocks also declined. Furthermore, investors will remain cautious ahead of slew of economic data from US to gauge economic health of the country and EIA weekly crude oil inventory data
• MCX Crude oil May is likely to slip towards Rs 9500-Rs 9400 level as long as it stays below Rs10000 level.
• MCX Natural gas May is expected to slip towards Rs260-Rs256 level as long as it stays below Rs274 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
