MCX Gold Oct is trading above the bullish cross over of 10 and 20 day EMA - ICICI Direct
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Bullion Outlook
* Spot gold is expected to hold above $2490 and move towards $2530 ahead of the key economic numbers from US. Rise is weekly jobless claims numbers would hurt the dollar. Similarly, weaker than expected US housing data would also support the bullions to hold firm. Meanwhile, investors will focus on the preliminary GDP numbers which is expected to show sign of improvement in the economy. Gold prices are likely to hold firm amid strong inflows into the gold ETFs and rising net longs in the futures which rose a 6- month high on Tuesday. Further, safe haven buying amid on going tension in the Middle East would provide support to the bullions.
* MCX Gold Oct is trading above the bullish cross over of 10 and 20 day EMA. Prices is expected to hold the support of 10-DEMA 71,500 and rise towards 72,200. Only close below 71,500 it would decline towards 71,000.
* Spot silver is hovering near the 20 day EMA $29.00. A move below $29 would bring correction in price towards $28.50. MCX Silver September is expected to hold the support near 83,500 and rise back towards 85,400.
Base Metal Outlook
* Copper prices are expected to find the floor amid improved risk sentiments and supply concerns from the top metal producing country Chile. Meanwhile, rising LME inventories and demand concerns from the top metal consumer China would restrict any major upside in the metal. Furthermore, expectation of weaker manufacturing activity in China would also hurt the demand outlook of the metal
* MCX Copper September is expected to hold the support of 20 DEMA at 802 and rebound towards 812. Only close below 802 it would weaken towards 796.
* MCX Aluminum is expected to face the hurdle near 233 and weaken towards 227. Only close below 227 it would weaken further towards 225.
Energy Outlook
* NYMEX Crude oil is expected to consolidate in the band of $73.50 and $76 amid mixed set of factors. Demand concerns from China and improved supplies from Russia would restrict the upside, where as fears of broadening Middle East conflicts and improved risk appetite would limit its downside. Increasing OI concentration in OTM and ATM put strikes indicates strong support near $73.50. 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 6200 and rise back towards 6400. Only close below 6200, it would turn weaker towards 6100.
* MCX Natural gas September is likely to hold the support near 174 and rebound towards the 10-day EMA at 184. Only a sustained move above 184 it would extend its rebound towards 190.
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