MCX Crude oil September is expected to find support near Rs 7900 and rise towards Rs 8300 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4400 and rise towards $4550 level on weak dollar and declining U.S treasury yields. Further, prices will find support on safe haven buying. As per CME Fedwatch Tool, Traders are pricing in a 67.3% chance that Fed will keep interest rates unchanged and a 32.7% chance of a rate hike in September. Meanwhile, concern about inflation deepened at FOMC meeting, with several policymakers ready to raise interest rates and many saying a hike in borrowing costs would be needed if inflation does not decline.
• MCX Gold October is expected to find support near Rs 156,000 and rise towards Rs 159,500 level.
• MCX Silver September is expected to move in a wide range between Rs 230,000 and Rs 240,000 level. Only a move above Rs 240,000, it would rise towards Rs 243,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower amid rise in metal deliveries to London Metal Exchange warehouses helped relieve a historic supply squeeze. Further, LME copper inventories climbed by 20,000 tons on Tuesday, marking their biggest daily increase since April, with Trafigura Group reportedly responsible for a substantial portion of the inflows. Meanwhile, sharp downside may be cushioned as concerns over tightening supply continued to underpin prices amid expectations for constrained global mine output. Investors are awaiting the official announcement regarding U.S. tariffs on imported refined copper.
• MCX Copper August is expected to face resistance near Rs 1380 level and dip towards Rs 1360 level. Only a move below Rs 1360 level, it will dip towards Rs 1355 level.
• MCX Aluminum August is expected to find support near Rs 344 level and rise towards Rs 352. MCX Zinc August is likely to find support near Rs 394 level and rise towards Rs 402- Rs 404 level.
Energy Outlook
• NYMEX crude oil expected to find support near $82 level and rise towards $87 amid growing concerns over supply disruptions. Further, tensions in middle east intensified after the United Arab Emirates said it was cutting all economic ties with Iran after accusing Iran of firing ballistic missiles at its territory. Additionally, US Energy Secretary Chris Wright said that US is playing the long game with Iran, implying the US has no plans for de-escalation of the conflict, potentially limiting crude supplied from the Middle East. Meanwhile, crude oil inventories in the U.S saw a massive increase of 4.4 million barrels during the week
• MCX Crude oil September is expected to find support near Rs 7900 and rise towards Rs 8300 level.
• MCX Natural gas August is expected to find support near Rs 264 level and rise towards Rs 275 level. Escalating geopolitical tension in the Middle East may provide support to energy prices.
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