MCX Crude oil June is likely to move in the band of Rs 8500 to Rs 9200 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is prices are likely to remain volatile amid uncertainty over peace agreement between US-Iran. US military operations in southern Iran and ongoing peace negotiations will keep investors cautious about inflation risks. According to reports, US military recently targeted missile launch sites and naval vessels suspected of deploying mines in southern Iran, citing an imminent threat to American forces in the region. Conversely, President Trump noted that negotiations with Tehran are progressing productively, though he cautioned that military actions could resume should diplomatic efforts fail. Market participants will continue to monitor regional developments for further directional cues.
• MCX Gold June is expected to move in the band of Rs157,000 to Rs161,000. Only a move above Rs161,000 it would rise towards Rs163,000.
• MCX Silver July is expected to trade in a wide range of Rs269,000- Rs 280,000. Only a move above Rs 280,000 it would move to Rs 283,500 to Rs 285,500 range.
Base Metal Outlook
• Copper prices are expected to remain in a wide range on concern over potential delay in the peace agreement between US and Iran. US military operations in southern Iran would keep investors nervous about the deal. Meanwhile, a concrete confirmation would improve risk appetite and global industrial demand. On the demand side, a steady Shanghai Yangshan copper premium at $73 per metric ton indicates resilient physical appetite from China, which might provide support to prices.
• MCX Copper June is expected to move towards Rs1370, as long as it holds above Rs 1348. Only a move above Rs1370, it would rise towards Rs1380 level.
• MCX Aluminum June is expected to hold its ground near Rs 380-Rs 382 level and move towards Rs 390-Rs 392 level. MCX Zinc June is likely to hold above ?365 and move towards Rs 375-Rs 378 level. Only a move below Rs 365 it would slip towards Rs 360.
Energy Outlook
• NYMEX crude oil prices are expected to remain highly volatile amid mixed trends, as escalating geopolitical friction in the Middle East collides with advancing diplomatic negotiations. The latest friction follows a sharp warning from US President Donald Trump over Iran’s enriched uranium stockpile, which he insists must be surrendered to US or destroyed under international supervision. We expect, $96 mark would act as key hurdle and on the downside $89 would act as immediate support. Only a move below $89, prices would correct towards $85 mark
• MCX Crude oil June is likely to move in the band of Rs 8500 to Rs 9200 level. Only a move below Rs 8500 it would correct further towards Rs 8200 levels.
• MCX Natural gas June is expected to rise towards Rs 298-Rs 300 level, as long as it holds above Rs 284 level..
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