MCX Gold June may hold Rs.150,900, rise to Rs.152,500-Rs.153,800
Bullion Outlook
* Spot Gold is likely to rise back towards $4800 level amid softening of US treasury yields and dollar. Further, prices may rally as U.S. President Donald Trump's announced an indefinite extension of a ceasefire with Iran. Investors hope that US and Iran will try to strike a deal to end the hostilities in Middle East, easing fears of energy led inflation shock. Meanwhile, sharp upside may be capped as upbeat economic data from US reinforced expectation that Fed may hold interest rate steady this year. Additionally, Federal Reserve nominee Kevin Warsh's comments at a Senate confirmation hearing sounded slightly hawkish. He said he has made no promises to Trump about cutting interest rates.
* MCX Gold June is expected to hold the support near Rs.150,900 level and rise back towards Rs.152,500- Rs.153,800 level.
* MCX Silver May is expected to slip towards Rs.241,500- Rs.240,000 level as long as it stays below Rs.252,000 level
Base Metal Outlook
* Copper prices are expected to trade with positive bias amid improved economic data from US and soft dollar. Further, prices may move up on rise in risk appetite in the global markets after US President Donald Trump said he would indefinitely extend ceasefire with Iran, easing concerns over imminent escalation in tension. Moreover, prospect of stronger demand in China would be supportive for the prices. Yangshan copper premium, a gauge of China's appetite for imported materials, stood at $68 a ton, signaling demand. Furthermore, Gulf supply disruptions and China's planned sulfuric acid export restrictions will impact metal industry as its essential for some copper extraction. Meanwhile, rising inventory at LME registered warehouses would weigh on prices. MCX Copper April is expected to rise towards Rs.1275 level as long as it stays above Rs.1255 level. A break above Rs.1275 level prices may be pushed towards Rs.1282- Rs.1290 level
* MCX Aluminum April is expected to slip towards Rs.360 level as long as its stays below Rs.368 level. MCX Zinc April is likely to find support near Rs.338 level and rise towards Rs.346 level.
Energy Outlook
• NYMEX Crude oil is likely to trade with negative bias as US President Donald Trump indefinitely extended the ceasefire with Iran, to allow talks to continue to end a war. Meanwhile, sharp downside may be cushioned as supply concern still lingers in the market. Shipping activity through the Strait of Hormuz, remained limited. US navy is maintaining its blockade of Iran’s ports and shore, which Iran consider as act of war. The extension of ceasefire appears unilateral as there are no comments from Iran's most senior leaders. Moreover, Kuwait declared force majeure on oil shipments due to the strait's blockade. Meanwhile, investors will remain cautious ahead of US EIA inventory data
• MCX Crude oil May is likely to dip towards Rs.8100- Rs.8000 level as long as it stays below Rs.8600 level.
• MCX Natural gas May is expected to slip towards Rs.263- Rs.258 level as long as it stays below Rs.272 level.
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