MCX Crude oil June is likely to face stiff resistance near Rs 9300 level and slip towards Rs 9000-Rs 8900 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to hold the support near $4400 level and rise towards $4500 level on expectation of correction in dollar and softening of US treasury yields. Further, prices may rise on growing hopes of peace deal between US and Iran, fading inflation worries and lowering expectation for interest rate hikes. 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. Further, there are reports that U.S. House has approved a resolution seeking to curb President Donald Trump war powers but this resolution will need Senate approval. US President could veto the measure and two-thirds majorities in both chambers will be required to override it. MCX Gold Aug is expected to rise further towards Rs 161,000-Rs 162,000 level as long as it stays above Rs 157,400 level
• MCX Silver July is expected to rise towards Rs 269,000-Rs 271,000 level as long as it stays above Rs 261,000 level
Base Metal Outlook
• Copper prices are expected to trade with negative bias on risk aversion in the global markets and on concerns that Middle East conflict would hamper demand growth. Additionally, investors will remain cautious ahead of slew of economic data from major economies to gauge economic health and demand outlook. Meanwhile, sharp fall in the prices may be cushioned on renewed concerns about US import tariffs. Investors are awaiting a recommendation from the US Department of Commerce by the end of the month on possible tariffs on imports of refined copper.
• MCX Copper June is expected to slip towards Rs1350 level as long as it stays below Rs 1380 level. A break below Rs 1350 level prices may be pushed towards Rs 1345-Rs 1340 level
• MCX Aluminum June is expected to slip towards Rs 390-Rs 387 level as long as its stays below Rs 397 level. MCX Zinc June is likely to face stiff resistance near Rs 377 level and slip towards Rs 368-Rs 366 level.
Energy Outlook
• NYMEX Crude oil is likely to trade with negative bias on growing optimism over peace deal between US and Iran. Further, Israel and Lebanon ceasefire agreement boosted hopes for broader deal. Additionally, US President Donald Trump suggested that there could be progress in negotiations with Iran as soon as this weekend and Iranian Foreign Minister Abbas Araqchi said Tehran's contacts with Washington have not been cut off. Meanwhile, sharp fall in prices may be cushioned as investors fear that exports from US may decline as US driving season may lift domestic demand, tightening global supply. Additionally, as per EIA data crude stockpiles fell by 8 million barrels to 433.7 million barrels in the week ending 29th May.
• MCX Crude oil June is likely to face stiff resistance near Rs 9300 level and slip towards Rs 9000-Rs 8900 level
• MCX Natural gas June is expected to slip towards Rs 300-Rs 295 level as long as it stays below Rs 318 level
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