MCX Natural gas August is expected to find support near Rs 260 level and rise towards Rs 270 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4350 and rise towards $4500 level as traders assess latest developments around the Strait of Hormuz. Further, prices will find support on soft dollar and safe haven buying. Additionally, investors are pricing in about a 46% chance of a rate hike in September, compared to 57% in previous week. China’s central bank increased its gold purchases last month, with reserves rising by about 20 tons in July following an increase of around 15 tons in June, marking the largest monthly addition since October 2023. Meanwhile, investors will keep an eye on U.S. inflation data later in this week for further clarity about Federal Reserve's policy moves.
• MCX Gold October is expected to find support near Rs 151,000 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 tightening supplies and easing concerns about US interest-rate hikes. Further, massive flow of metal to U.S, driven by fears of new tariffs has reduced global supply and pushed up benchmark prices on London Metal Exchange. 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 Rs1365 level. Only a break above Rs1390 level, it will rise towards Rs1395 level.
• MCX Aluminum August is expected to find support near Rs 348 level and rise towards Rs 360 amid supply concerns. MCX Zinc August is likely to hold support near Rs 388 level and rise towards Rs 397- Rs398 level.
Energy Outlook
• NYMEX crude oil expected to find support near $78 level and rise towards $85 as Iran and Oman remained short of a deal to reopen the Strait of Hormuz. Further, prices will find support as a Saudi oil refinery was attacked by Houthi militants, further straining global fuel supplies. Additionally, Ukraine’s military attacked the large Taneco oil refinery and the ZapSibNeftekhim petrochemical plant deep inside Russia.
• On the data front, a strong put base at $78 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 7500 and rise towards Rs 8000 level.
• MCX Natural gas August is expected to find support near Rs 260 level and rise towards Rs 270 level.
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