IGI Logo

Bullion Outlook

• Spot gold is expected to extend its rise towards $2550 amid increasing bets of loose monetary policy from major central banks. Dovish comments from ECB president and Fed Chair Jerome Powell is going to support the bullions to regain its strength. Further, escalating geopolitical tension in the Middle East would increase the safe haven bids and push the prices higher. Increasing bullish bets as indicated by the CFTC net longs, which hit its highest mark since March 2024 would strengthen the yellow metal to trade higher.

• MCX Gold Oct is expected to hold the support near 71,200 (20 DEMA) and rise towards 72,300. Only above 72,300 it would rise towards 72,800.

• Spot silver is expected to rise towards $30.00, as long as it holds above $29.00. Only close above $30.00 it would open the doors towards $30.80. MCX Silver September is expected to hold the support near 83,800 and rise back towards 86,000. A move above 86,000 it would rise towards 87,400.

Base Metal Outlook

• Copper prices are expected to hold its gains and trade higher amid softness in the dollar. Dovish comments from the major central bankers, particularly from the US Fed Chair Powell increased the hopes of lower interest rates in coming month. Further, drop in SHFE stocks indicates improvement in local demand which could also support the metal prices to trade higher. Meanwhile, rising inventory levels at LME, contraction in the manufacturing activities in US and Europe and lower property prices in China would check any major upside in the metal prices.

• MCX Copper September is expected to hold the support of 10 DEMA at 801 and extend its rise towards 816. A move above 816 would open the doors towards 821.

• MCX Aluminum is expected to hold its gains and rise towards 233, as long as it trade above 225.

Energy Outlook

• NYMEX Crude oil is expected to extend its rebound and move towards $77 mark amid fears of broadening Middle East conflicts. Fear of supply disruption and weakness in the dollar would support the oil prices to hold firm. Further, increasing bets of lower interest rates and improved risk appetite in the global equities would strengthen bullish bets. Meanwhile, slower economic growth in China would limit the upside in price. NYMEX Crude oil is likely to rise towards $77, as long as it holds above $74. Closer of OI of ATM and OTM call strikes indicates higher prices. Further, higher OI concentration near the $75 strike Put indicates strong support for price.

• MCX Crude oil Sep is likely to rise towards 6450, as long as it holds above 6200. Reversal in the RSI indicates change in momentum.

• MCX Natural gas September is likely to move lower towards 176, as long as it remains under 188 mark. Rising gas inventories and lower cooling demand would weigh on the gas prices.

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

SEBI Registration number INZ000183631