MCX Natural gas August is expected to face resistance near Rs 270 level and dip towards Rs 260 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4340 and rise towards $4450 level after softer U.S inflation data relieved near term pressure on US Federal Reserve to hike interest rates. Further, prices will find support on soft dollar and safe-haven buying. Additionally, investors are pricing in about a 40% chance of a rate hike in September, compared to 57% in previous week. Gold backed U.S ETFs saw 3 billion of inflows in July, snapping two straight months of outflows. Meanwhile, investors will keep an eye on U.S. PPI data for further clarity about Federal Reserve's policy moves.
• MCX Gold October is expected to find support near Rs 152,000 and rise towards Rs 156,500 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. Meanwhile, further upside will be limited as premium on copper imported into China dropped to the lowest level in almost a month.
• MCX Copper August is expected to rise towards Rs1385 level as long as it trades above Rs1368 level. Only a break above Rs1385 level, it will rise towards Rs 1390 level.
• MCX Aluminum August is expected to face resistance near Rs 355 level and dip towards Rs 345. MCX Zinc August is likely to hold support near Rs388 level and rise towards Rs 397- Rs 398 level
Energy Outlook
• NYMEX crude oil expected to face resistance near $85 level and dip towards $80 after U.S Energy Information Administration reported that U.S crude oil inventories rose by 17.4 million barrels last week. This was the biggest weekly move in inventories since January 2023. Further, OPEC lowered its forecast for world oil demand growth in 2026 to 580,000 barrels per day. Meanwhile, prices will find cushion on concerns over ongoing supply disruptions amid Middle east conflict.
• 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 face resistance near Rs 8100 and dip towards Rs 7700 level.
• MCX Natural gas August is expected to face resistance near Rs 270 level and dip towards Rs 260 level.
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