MCX Crude oil is likely to rise towards back towards 7200 levels as long as it trades above 7000 levels - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is likely to hold its gains and trade with the positive bias amid safe haven buying and increasing bets that other central banks except US Fed will change their monetary policy stance. Escalating geopolitical risk in the Middle East amid growing tension between Israel and Iran would support the bullion to trade higher . Spot gold prices likely to rise towards $2410 levels as long as its stays above immediate support near $2330 level. Meanwhile, fading hopes of June rate cut and hawkish comments from the Fed members would limit its upside. Only, close below $2325 level it may correct towards its psychological support of $2300 level
* MCX Gold June is likely to rise further towards 72,200 level as long as it stays above 71,000 level. A break above 72,200 level prices may push the price towards 72,600 level. On the contrary, close below 71,000 level it may correct towards its immediate support of 70500 level.
* MCX Silver May is expected to rise towards 84,500 level as long as it sustains above 82,000 level.
Base Metal Outlook
* Copper prices expected to take a pause its rally and trade with negative bias amid strong dollar. Further, sluggish growth in the top metal consumer China and expectation of weaker trade balance numbers could limit its upside. Meanwhile, tighter supplies would limit major downside in the base metals
* MCX Copper is expected to move south towards 811 level as long as it stays below 825 level. A break below 811 would open doors for 804 levels. On the contrary, a sustain close above 825 levels prices my rise towards 830 levels
* Aluminum is expected to face hurdle near 226.20 levels and slip back towards 221 level
Energy Outlook
* NYMEX Crude oil is expected to move back towards $86.30 level as long as it trades above $84.50 level amid heightened tension in the MiddleEast, which could risk disruption to supply from the oil producing region. However, sharp upside may be limited amid strong dollar and expectation of weak economic numbers from China. Moreover, rise in US inventories last week also raised some concerns about demand in the short term.
* MCX Crude oil is likely to rise towards back towards 7200 levels as long as it trades above 7000 levels.
* Natural gas April is expected to trade lower amid higher inventories and mixed weather forecast. MCX Natural gas is expected to move towards 142 level as long as it trades below 155. Only close below 142, it would weaken further towards 138.
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