MCX Crude oil May is likely to dip towards Rs.8000- Rs.7900 level as long as it stays below Rs.8750 level - ICICI Direct
Bullion Outlook
* Spot Gold is likely to rise further towards $4900 level on weak dollar and softening of US treasury yields. Further, investors hope that US and Iran will try to strike a deal to end the hostilities in Middle East, easing fears of energy led inflation shock. Furthermore, as per media reports Iran could consider allowing ships to sail freely through the Omani side of the strait if a deal was reached. On top of its US and Iran are considering to extend ceasefire to allow more time to negotiate peace agreement, long-term agreement viewed as a genuine possibility. Additionally, prices may move higher on renewed concerns over Fed independence after Trump threatened to fire Fed Chair Powell from his separate seat on the U.S. central bank’s Board of Governors if he does not vacate that post as well when his term as Fed chief ends on May 15
* MCX Gold June is expected to hold support near Rs.152,500 level and rise towards Rs.156,500- Rs.157,500 level.
* MCX Silver May is expected to rise towards Rs.257,000- Rs.260,000 level as long as it stays above Rs.244,000 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias amid weak dollar and rise in risk appetite in the global markets. Moreover, prospect of stronger demand in China would support prices. Yangshan copper premium, a gauge of China's appetite for imported materials, rose to $73 a ton, it has gained 270% since the end of January and is at its highest since June last year, signaling demand. Furthermore, worries about shortages of sulphur used to process metal, due to disrupted supplies from the Middle East and China's plan to halt exports, would be supportive for the prices. Middle East accounts for 24% of global Sulphur production. Meanwhile, investors will remain cautious ahead of slew of economic data from China and US to gauge economic health of the countries
* MCX Copper April is expected to rise further towards Rs.1290- Rs.1300 level as long as it stays above Rs.1250 level.
* MCX Aluminum April is expected to rise towards Rs.372 level as long as its stays above Rs.365 level. MCX Zinc April is likely to hold support near Rs.335 level and rise towards Rs.342- Rs.345 level.
Energy Outlook
* NYMEX Crude oil is likely to trade with negative bias on growing optimism that another round of peace talk between US and Iran may end the hostilities in Middle East and release supply from key producing region trapped due to closure of Strait of Hormuz. Moreover, as per media reports Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz if a deal was reached. Meanwhile, sharp downside may be cushioned on weak dollar and as US Treasury Secretary Scott Bessent said that US will not be renewing the waivers that allowed the purchase of some Iranian and Russian oil. Additionally, US has completely enforced naval blockade against Iran, a move which may complicate peace talks
* MCX Crude oil May is likely to dip towards Rs.8000- Rs.7900 level as long as it stays below Rs.8750 level.
* MCX Natural gas April is expected to slip towards Rs.238- Rs.235 level as long as it stays below Rs.252 level.
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