MCX Gold April prices is likely to rise further towards 66,200 level - icici Direct
Metal’s Outlook
Bullion Outlook
* Spot gold is likely to hold the support near $2160 levels and rise further towards $2190 levels amid expectation of further weakness in dollar and softening of US treasury yields. Dollar is likely to move south as mixed batch of economic data from US kept an anticipated June interest rate cut from the Fed on the table. Additionally, demand for safe haven may increase on mounting tension in Middle East and Russia. Meanwhile, investors will remain cautious ahead of US retail sales, the producer price index and the weekly initial jobless claims data to get fresh cues on interest rate trajectory
* MCX Gold April prices is likely to rise further towards 66,200 level as long as it stays above 65,600 levels
* MCX Silver May is expected to follow gold and rise further towards 75,800 level as long as it sustains above 74,300 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias buoyed by weakness in dollar and on concerns for refined copper supply after Chinese smelters agreed on a joint production cut to cope with raw material tightness. Further, prices may move north on persistent decline in LME inventories coupled with a rise in cancel warrants.
* MCX Copper is expected to move north towards 758 level as long as it stays above 745 level. A move above 758 would open the doors for 762 levels.
* Aluminum is expected to rise further towards 206 level as long as it stays above 203.50 level.
Energy Outlook
* NYMEX Crude oil is expected to rise further towards $81 amid weakness in dollar and as unexpected draw in US crude oil inventories signals rising demand. Additionally, Russia’s refineries are facing disruption due to Ukrainians attack. Moreover, IEA monthly report will be closely watched for clues about supply and demand outlook after OPEC sticked to its forecast of a strong oil demand growth in coming years. Additionally, hotter than expected inflation data did little to change expectations that Fed would begin cutting rates later this year. Lower rates can boost economic growth and support oil demand
* MCX Crude oil is likely to rise towards 6700 levels as long as it trades above 6400 levels. • MCX Natural gas is expected to slip further towards 132 level as long as it trades below 145 level
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