MCX Gold October is expected to find support near Rs 152,000 and rise towards Rs 155,500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4340 and rise towards $4450 level as traders hope of a positive deal between U.S and Iran to reopen the Strait of Hormuz. Further, prices will find support on softening of U.S treasury yields and safe-haven buying. Additionally, investors are pricing in about a 50% chance of a rate hike in September, compared to 57% in previous week. Meanwhile, investors will keep an eye on U.S. inflation data for further clarity about Federal Reserve's policy moves. Any sign of moderation in US inflation numbers would further lower the prospects of US interest rate hike and support the bullions to trade higher.
• MCX Gold October is expected to find support near Rs 152,000 and rise towards Rs 155,500 level.
• MCX Silver September is expected to move in a wide range between Rs 232,000 and Rs 240,000 level. Only a move above Rs 240,000, it would rise towards Rs 243,000 level
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns. Further, traders remained cautious over potential US import tariffs on copper, which have continued to redirect metal from international markets into US warehouses. Additionally, prices will find support from soft dollar and strong demand from China. Meanwhile, operations at part of Codelco’s flagship El Teniente mine could remain suspended for up to two years, adding to supply concerns.
• MCX Copper August is expected to rise towards Rs1390 level as long as it trades above Rs1368 level. Only a break above Rs 1390 level, it will rise towards Rs 1395 level.
• MCX Aluminum August is expected to find support near Rs 350 level and rise towards Rs 360 amid supply concerns. MCX Zinc August is likely to hold support near ?388 level and rise towards Rs 397- Rs 398 level.
Energy Outlook
• NYMEX crude oil expected to find support near $80 level and rise towards $86 as Iran said Strait of Hormuz shipping route would remain closed unless U.S accepted Iran's conditions for ending the war. Further, U.S and Yemen's Iran-aligned Houthis reported separate attacks on shipping in Strait of Hormuz and Bab el-Mandeb Strait. Meanwhile, upside will be limited after Pakistan announced that U.S and Iran are close to some sort of an agreement of re-opening of Strait of Hormuz. Investors will keep an eye on U.S crude oil inventory levels.
• On the data front, a strong put base at $80 strike would likely to act as key support for price. On the upside, higher call base at $85 would act as an immediate hurdle. MCX Crude oil August is expected to find support near Rs 7700 and rise towards Rs 8200 level.
• MCX Natural gas August is expected to face resistance near Rs 270 level and dip towards Rs 260 level
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