MCX Gold June may face strong resistance at Rs.154,000, with downside towards Rs.150,000 - Rs.148,000 - ICICI Direct
Bullion Outlook
* Spot Gold is likely to slip back towards $4600 level on strong dollar and rise in US treasury yields. Further, peace talk between US and Iran failed, jeopardizing fragile 2-week ceasefire. Moreover, US President Donald Trump told US Navy would start blockading the Strait of Hormuz, it will block all maritime traffic entering and exiting Iranian ports. Additionally, no end to choke on Middle East energy exports will push oil prices higher and drive inflation higher. Investors fear that surge in inflation may prompt major central banks across globe to tighten their monetary policy. Furthermore, market fears that if US renews strike on Iran then energy infrastructure across region will be in risk driving energy prices sharply higher
* MCX Gold June is expected to face stiff resistance near Rs.154,000 level and slip towards Rs.150,000- Rs.148,000 level.
* MCX Silver May is expected to dip towards Rs.236,000- Rs.234,000 level as long as it stays below Rs.247,000 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid strong dollar, risk aversion in the global markets and persistent rise in inventory at LME registered warehouses. Market sentiments are hurt as peace talk between US and Iran failed. Additionally, closure of Strait of Hormuz has raised concerns over inflation and slowing global industrial activity, clouding metals demand. Meanwhile, sharp downside would be cushioned on prospect of stronger demand in China. Yangshan copper premium, a gauge of China's appetite for imported materials, rose to $73 a ton, signaling demand.
* MCX Copper April is expected to slip further towards Rs.1190 level as long as it stays below Rs.1216 level. A break below Rs.1190 level prices may be pushed towards Rs.1185- Rs.1180 level
* MCX Aluminum April is expected to rise towards Rs.362 level as long as its stays above Rs.354 level. MCX Zinc April is likely to face stiff resistance near Rs.334 level and slip towards Rs.327- Rs.326 level.
Energy Outlook
* NYMEX Crude oil is likely to trade with positive bias as peace talk between US and Iran failed, jeopardizing fragile 2-week ceasefire. Moreover, US President Donald Trump told US Navy would start blockading the Strait of Hormuz, it will block all maritime traffic entering and exiting Iranian ports. Continued hostilities in Middle East coupled with blockade of Hormuz points towards sustained supply disruption in oil market. Iran denied of any further plans with US on nuclear talks but media reports that Middle east government attempt to broker more ceasefire talks in coming days. Meanwhile, strong dollar and risk aversion in the global markets may weigh on prices
* MCX Crude oil April is likely to open with gap-up. Oil prices likely to rise towards Rs.9900- Rs.10,300 level as long as it stays above Rs.9100 level.
* MCX Natural gas April is expected to slip towards Rs.240- Rs.235 level as long as it stays below Rs.261 level.
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