IGI Logo

Bullion Outlook

* Spot gold is expected to hold above $2500 and move towards $2535 amid loose monetary policy from major central banks and increasing geopolitical risk. Dovish comments from the Fed members and ECB members is providing enough strength to prices. Further, weaker economic numbers from US would support the bullions to trade higher. Moreover, investors will eye on key US prelim GDP and PCE price index data to get more clues. Additionally, increasing inflows into the gold ETFs and rising net longs in the futures would strengthen the yellow metal to trade higher.

* MCX Gold Oct is trading above the bullish cross over of 10 and 20 day EMA. Prices expected to hold the support near 71,700 and rise towards 72,300. Only above 72,300 it would open the doors towards 72,800.

* Spot silver is hovering near the $30.00. A sustained move above $30.00 would open the doors towards $30.80. MCX Silver September is expected to hold the support near 84,500 and rise back towards 86,400.

Base Metal Outlook

* Copper prices are expected to hold its gains amid improved risk sentiments and supply concerns from Chile. Improving local demand from China and as well rising export of cathode in July indicates demand recovery from global markets as economies are trying to shift towards industrial modernization. Further, expectation of interest rate cut from major economies would also strengthen the demand outlook of the metal. Meanwhile, higher inventory levels in LME could limit the upside in the red metal.

* MCX Copper September is expected to hold the support of 10 DEMA at 810 and extend its rise towards 821. A move above 821 would open the doors towards 826.

* MCX Aluminum is expected to hold its gains and rise towards 235, as long as it trade above 230. Increasing imports from China despite higher production will support bullishness in prices.

Energy Outlook

* NYMEX Crude oil is expected to hold the support near $75 and move back to $77.50 mark amid fears of broadening Middle East conflicts. Further, improved risk appetite and decline in crude oil inventories would support the oil prices to hold firm. NYMEX Crude oil is likely to rise towards $77.5, as long as it holds above $75. Higher OI concentration at 75 put strike indicates strong base, On the upside, higher OI concentration observed at 77 and 80 strike call which would act as major resistance.

* MCX Crude oil Sep is likely to hold the support near 6320 and rise back towards 6500. Only close below 6320, it would turn weaker towards 6240.

* MCX Natural gas September is likely to hold the support near 172 and rebound towards the 10-day EMA at 184. Meanwhile, rising gas inventories could check its upside.

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631