MCX Gold Aug is expected to slip towards Rs150,000-Rs148,500 level as long as it stays below Rs153,500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to face stiff resistance near $4260 level and slip further towards $4120 level on firm dollar. Further, prices may slip as renewed hostilities in Middle East may weaken the hopes of imminent resolution between the US and Iran and reignite inflation concerns and higher interest rates for prolonged time. Further, investors await key inflation data to see whether price pressures are continuing to build. If US inflation data surprise on the upside, then we may see sharp fall in prices. Moreover, robust economic data from US signaled resilience in economy, giving room for US Fed to hold the interest rates at higher level for longer duration.
• MCX Gold Aug is expected to slip towards Rs150,000-Rs148,500 level as long as it stays below Rs153,500 level
• MCX Silver July is expected to slip towards Rs236,000-Rs234,000 level as long as it stays below Rs245,000 level.
Base Metal Outlook
• Copper prices are expected to trade with negative bias on firm dollar and risk aversion in the global markets. Further, prices may slip on concerns over escalating tension in Middle East after U.S. military launched strikes against Iran; US President Donald Trump said Tehran had shot down a U.S. Apache helicopter in the Strait of Hormuz. Investors fear that rising energy cost linked to middle east conflict has heightened worries of persistent inflation and prospect of further monetary tightening across major economies. Additionally, Yangshan copper premium fell to a 5-week low of $64 per ton, signaling softer import demand in China.
• MCX Copper June is expected to slip towards Rs1315 level as long as it stays below Rs1345 level. A break below Rs1315 level prices may be pushed towards Rs1305-Rs1300 level
• MCX Aluminum June is expected to rise towards Rs382-Rs385 level as long as its stays above Rs375 level. MCX Zinc June is likely to face stiff resistance near Rs371 level and slip towards Rs363-Rs359 level.
Energy Outlook
• NYMEX Crude oil is likely to trade with positive bias on fears that rising hostilities in Middle East may jeopardise the peace talks between US and Iran. US Military launched new strikes on Iran after President Donald Trump vowed to respond to the downing of a U.S. Apache attack helicopter overnight. Additionally, prices may edge higher as data showed another large draw in U.S. crude stocks. As per API crude stocks fell by 9.12 million barrels in the week ending 5 th June. Furthermore, prices may rise on fears that Yemen’s Houthis announcement to completely ban Israeli shipping increases risk around one of the key alternative route for Saudi Arabian oil making its way into market. Meanwhile, sharp upside may be capped on firm dollar and risk aversion in global markets
• MCX Crude oil June is likely to hold support near Rs8200 level and rise towards Rs8600-Rs8700 level
• MCX Natural gas June is expected to slip towards Rs290-Rs285 level as long as it stays below Rs310 level.
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