MCX Copper Sep is expected to rise towards Rs.925 level as long as it holds above Rs.910 level - ICICI Direct
Bullion Outlook
* Spot Gold is likely to hold its gains and trade higher ahead of today’s FOMC meeting. Growing bets of multiple rate cuts in the coming months will boost gold’s demand. Signs of slowdown in the US labor market and steady US inflation numbers has strengthened the chances of more than 50 bps rate cut in this year. Additionally, safe haven buying and strong inflows into the ETF’s would also help the precious metals to trade higher. Meanwhile, investors will eye on US FOMC statement and economic projection to get more clarity in price trend.
* MCX Gold Oct is expected to rise towards Rs.110,800 level as long as it holds above Rs.109,400 level. Only a move below Rs.109,400, it would correct towards Rs.108,500.
* Spot Silver is expected to rise towards $43 per ounce mark, as long as it trades above $42.00 mark. MCX Silver Dec is expected to extend its gains towards Rs.131,500 level as long as it trades above Rs.127,200 level.
Base Metal Outlook
* Copper prices are expected to trade with bullish bias amid weak dollar and growing prospects of monetary policy easing from the US Federal Reserve. Prices would get support due to supply disruption from the second largest copper mine in Indonesia. Moreover, capacity constrain in China would strengthen its bullish bias. Meanwhile, forecast of supply improvement from Chile could counter the recent supply concerns. Investors will eye on key central bank policies this week to get more clarity in price direction.
* MCX Copper Sep is expected to rise towards Rs.925 level as long as it holds above Rs.910 level.
* MCX Aluminum Sep is expected to rise towards Rs.264 level as long as it stays above Rs.258 level. Tightness in the physical market would support metal prices to hold its gains. MCX Zinc Sep is likely to rise towards Rs.286 as long as it stays above Rs.280.
Energy Outlook
* Crude oil is likely to hold its gains on concerns of supply disruption from Russia. Persistent attacks on Russian energy infrastructures and mounting US pressure on buyers of Russian crude would hurt Russian supplies. Additionally, any secondary sanction on companies in India and China could also bring volatility in price. Moreover, a surprise drop in API crude oil inventory in US would also support prices to trade higher. Prices would also get support ahead of interest rate cut by the US Federal Reserve. Meanwhile, focus will remain on economic projection, which could bring more clarity in price.
* WTI crude oil is likely to hold its ground near $63 level and rebound towards $66 per barrel mark. MCX Crude oil Oct is likely to move higher towards Rs.5800 level as long as it stays above Rs.5500 level.
* MCX Natural gas Sep is expected to face the hurdle near Rs.282 and move lower towards Rs.265 level. Only a move above Rs.282 it would turn bullish.
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