IGI Logo

Metal’s Outlook

Bullion Outlook

* Spot gold is likely to rise further towards $2300 hitting another record high as long as it holds support near $2260 level amid expectation of correction in dollar and US treasury yields. Dollar is moving south ahead of slew of economic data from US and US Fed Chair Powell Speech, to get fresh cues on interest rate trajectory. Moreover, demand for safe haven may increase on mounting tension in Middle East and eastern Europe. Iran vowed to respond to Israeli airstrike on Tehran consulate in Syria and even Hezbollah pledged punishment and revenge on Israel. Investors fear over region wide conflict

* MCX Gold June prices is likely to rise further towards 69,500 level as long as it sustains above 68,500 level. On Flip side, only close below 68,500 would change the course of direction pushing prices towards 10- Day EMA around 67,300 level

* MCX Silver May is expected to follow gold and rise further towards 78,000 level as long as it sustains above 76,000 level.

Base Metal Outlook

* Copper prices are expected to trade with the positive bias amid weakness in dollar and improved economic data from major countries across globe. Further, prices may rally on concerns over tightening market. Furthermore, persistent decline in stocks at LME registered warehouses would aid copper prices. Additionally, prices may move north on anticipation of interest rate cuts coming from central banks in the US and elsewhere

* MCX Copper is expected to move further north towards 776 level as long as it stays above 763 level. A break above 776 would open doors for 780 levels

* Aluminum is expected to rise towards 214 level as long as it remains above 211 level

Energy Outlook

* NYMEX Crude oil is expected to rise further towards $86 levels as long as it hold the support near $84.50 levels amid weak dollar and larger than expected fall in crude oil inventories. As per API crude stocks fell by about 2.3M barrels for week ending 29th March. Data also showed gasoline inventories fell by about 1.5M barrels and distillate by 2.6M barrels. Further, prices may rally as escalating geopolitical tension in Middle East and Eastern Europe raised concerns about tighter supplies. Moreover, investors will remain vigilant ahead of OPEC+ meeting where panel is unlikely to make any changes in oil output policy and official government crude oil inventory report

* MCX Crude oil is likely to rise towards 7180 levels as long as it trades above 6980 levels. A sustain break above 7180 level would open doors for 7250 levels

* MCX Natural gas April is expected to rise further towards 50-day EMA of 161 levels as long as it stays above 20-day EMA around 147 levels.

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631