MCX Gold April likely faces Rs.149,000 resistance, may drop to Rs.144,000 - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot gold is expected to face hurdle near $4800 and move lower towards $4600 amid growing prospects of tighter monetary policy from major central banks to counter inflation. Further, a strong dollar and rising US treasury yields would likely to weigh on prices. In addition to that, recent fund liquidation of precious metals will be negative for prices as long holding in gold ETFs fell to 2-month lows. On the other hand, geopolitical uncertainty and escalating conflict in the Middle east would bring safe haven buying in the precious metals and limit its downside.
* MCX Gold April is expected to face resistance near Rs.149,000 and move towards Rs.144,000. Only a move below Rs.144,000, it would turn weaker towards Rs.141,500.
* International spot silver is expected to move in the range of $70 and $78. MCX Silver May is expected to move in between Rs.224,000 and Rs.246,000. Only a move above Rs.246,000 it would rise towards Rs.254,000.
Base Metal Outlook
* Copper prices are expected to remain under pressure amid strong dollar and softening Chinese demand. Furthermore, rising global inventory levels in major exchanges would likely to weigh on metal prices. LME copper inventory hit 334,100 tons highest level since September 2019. A rapid buildup of exchange stockpiles since the start of the year reflects a growing bearish mood in the physical market for copper. Further, ongoing geopolitical and trade uncertainties would also hurt demand outlook. Meanwhile, we may expect some recovery in today's session after a sharp fall of almost 4% during this week.
* In the near term MCX Copper March is expected to move towards Rs.1090 as long as it trades under Rs.1130
* MCX Aluminum March is expected to hold above Rs.324 and rise towards Rs.338 level. Prices are expected to regain its strength due to supply disruption from the Middle east region.
* MCX Zinc March is likely to face hurdle near Rs.310 level and move lower towards Rs.305 level.
Energy Outlook
* NYMEX crude oil is expected to take a breather as European nations and Japan offered to efforts to secure safe passage for ships through the Strait of Hormuz, easing fears of a total blockade. The US indicated for additional release from SPR beyond existing commitments to the IEA. In addition to that, a proposed sanction relief to 140 million barrels of Iranian crude also ease global supply concerns. For the day, NYMEX crude is likely to move in a broader range of $90 and $99. A move below $90 could bring correction in price towards $85 mark.
* MCX Crude oil April is likely to move in a broader range of Rs.8500 and Rs.9300. Only a move below Rs.8500 it would correct towards Rs.8200.
* MCX Natural gas March future is expected to slip towards Rs.280-285 zone as long as it trades under Rs.306. NYMEX natural gas is expected to correct further amid easing heating demand in US and rising inventory levels.
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