MCX Crude oil September is expected to find support near Rs 8100 and rise towards Rs 8500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4480 and rise towards $4600 level on soft dollar and safe haven buying. Further, prices may find support as U.S. Treasury Secretary Scott Bessent said he may further increase the governments repurchases of Treasuries. As per CME Fedwatch Tool, traders are pricing in a 64% chance that Fed will keep interest rates unchanged and a 36% chance of a rate hike in September. Meanwhile, sharp upside may be limited as surge in crude oil prices has raised inflation concerns and may add pressure on Fed to tighten monetary policy.
• MCX Gold October is expected to find support near Rs 157,000 and rise towards Rs 161,000 level.
• MCX Silver September is expected to move in a wide range between Rs 237,000 and Rs 245,000 level. Only a move above Rs 245,000, it would rise towards Rs 248,000 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, London Metal Exchange copper inventories have surged by more than 50% in three days, easing fears of an acute supply squeeze and sharply narrowing a key market spread. 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 resistance near Rs 350 level and dip towards Rs 340. MCX Zinc August is likely to find support near Rs 396 level and rise towards Rs 406- Rs 408 level
Energy Outlook
• NYMEX crude oil expected to find support near $84 level and rise towards $89 amid growing concerns over supply disruptions. Further, President Trump threatened to crush Iran’s economy, dampening any hopes of a resolution to the US-Iran war and the reopening of the Strait of Hormuz. Additionally, prices may find support as Russia exploits Kyiv’s lack of missile interceptors in another wave of attacks. 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 8100 and rise towards Rs 8500 level.
• MCX Natural gas September is expected to face resistance near Rs 272 level and dip towards Rs 258 level.
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