MCX Gold Oct is expected to rise towards 73,500, as long as it holds above 72,300 - ICICI Direct
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Bullion Outlook
* Spot gold is likely to trade higher amid growing prospects of loose monetary policy from major central banks. Further, increasing ETF inflows would provide support to the bullions. Long positions in ETF rose to 6 month high, indicates strong demand. Slowdown in the US economy and crack in the labor market would favor the central bank to lower interest rates. Meanwhile, focus will remain on key economic numbers from US, which could bring further more clarity on price direction. Closer of ATM call strikes indicates upward bias in the yellow metal.
* MCX Gold Oct is expected to rise towards 73,500, as long as it holds above 72,300.
* Spot silver is expected to hold the support of 20 day EMA at $29 and rise towards $30.20. A move above $30.20 would open the doors towards $31.00. MCX Silver December is expected to move higher towards 87,800, as long as it holds the key support at 86,000. A move above 87,800 would open the doors towards 89,000.
Base Metal Outlook
* Copper prices are expected to hold its ground and move north amid signs of pick-up in demand from China. Further, improved risk sentiments amid growing prospects of interest rate cut by major central banks would help the base metals to hold firm. Additional rise in Yangshan copper premium to one-month high indicates improving demand in China. Meanwhile increasing inventory levels in LME would limit its upside. Now focus will shift towards key economic numbers from China which could bring further clarity.
* MCX Copper September is expected to hold the support of 20 day EMA at 794 and move towards the 810. Only move above 810 it would open the doors towards 816.
* MCX Aluminum is expected to rise towards 226, as long as it holds above 222. Formation of bullish engulfing pattern would support the metal to trade higher.
Energy Outlook
* NYMEX Crude oil is expected to extend its recovery rally amid output disruption in the Gulf of Mexico. Halt in production due to hurricane Francine would support the oil prices to move back towards key hurdle at $71. Further, improved risk sentiments amid growing bets of loose monetary policy from major central banks would bring back bulls into action. On the upside $71 would act as major resistance for price. Similarly $65 would act as strong support for prices. Meanwhile, closure of ITM and ATM call strike indicates upside in the oil price. Further, addition of OI in the put strike would also support it to hold above $65.
* MCX Crude oil Sep is likely to rise towards 5900,as long as it holds above 5650. Reversal in the RSI indicates from oversold zone would help it to trim its losses.
* MCX Natural gas September is likely to rise towards 206 mark as long as it holds above 192. Above 206, it would extend its rally towards 212.
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