MCX Gold June is expected to find the floor near 70100 and move towards the initial resistance at 71300 - ICICI Direct
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Metal’s Outlook
Bullion Outlook
Spot gold is expected to find support near $2280 and move towards $2320 amid geopolitical risk. Fresh attacks in Rafah has raised the concerns that tension between Israel and Hamas could escalate. Meanwhile, growing bets that the Federal Reserve will reduce the rates in September after softer US jobs report would also support the bullions to move higher. Now the focus will shift towards the comments from the Fed members which could bring more clarity on the timing of the first rate cut.
MCX Gold June is expected to find the floor near 70100 and move towards the initial resistance at 71300. Only close below 70100, it would turn weaker.
MCX Silver July is expected to consolidate in the band of 80200 and 82200. Only a move above the 20 day EMA of 82200 would open the upside in the metals to 83200. Alternatively, below 80200 it would slid towards 79200.
Base Metal Outlook
Copper prices are expected to hold its strength and trade with a positive bias on expectation that global supply will struggle to meet growing demand from the clean energy sector. Strong demand growth from the EV space would support the metal to trade higher. Further, measures from Beijing to consumers switching to EV would increase the demand of the metals. Moreover, improved risk sentiments and optimism from the Chinese property sector would boost the prices to stay elevated.
For the day MCX Copper May is likely to hold the support of 10 day EMA at 848 and move higher towards 862. Only a move below 848, it would turn weaker and test the next support at 842.
Aluminum May future is expected to find the floor near 230 and rebound towards 237. Only close below 230 it would turn weaker.
Energy Outlook
NYMEX Crude oil is expected find the floor near $77 on prospect that OPEC might extend its output cut. Further, prices may find support after Saudi Arabia raised the price of its crude oil to Asia for 3 rd straight month. Meanwhile, focus will remain on the geopolitical concerns in Middle East. Recent , attacks on Rafah after the latest round of negotiation for a ceasefire would limit the downside in the oil prices. On the upside $81 would act as immediate resistance for NYMEX crude.
MCX Crude oil May future is expected to find the floor near 6500 and move towards the initial hurdle at 6700. Only, move below 6500 it would turn bearish.
MCX Natural Gas May future is expected to hold the support at 170 and move higher towards 186. An increase in demand form the US electricity providers and expectation of export boost would support the gas prices to trade higher.
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