MCX Natural gas July is expected to slid towards Rs 300 - Rs 295 level as long as it stays below Rs 320 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to face strong resistance near $4100 and move lower towards $3940 amid strong dollar and growing expectation that the US Federal Reserve will raise interest rates to combat inflation. Further, expectation of strong job growth numbers and higher inflation would force the US Federal Reserve to keep rates higher in this year. Latest US economic numbers has increased the probability of September rate hike to 65%. Furthermore, outflow of funds from global ETF’s would also weigh on prices. Meanwhile, today investors will keep an eye on comments from major central banks which could bring more clarity on monetary policy. However, strong central bank buying and bargain hunting could provide cushion to prices.
• MCX Gold Aug is expected to face hurdle near Rs 144,000 - Rs 144,500 level and move lower towards Rs 140,000 level
• MCX Silver September is expected to dip towards Rs 218,000 - Rs 219,000 level as long as it stays below Rs 231,000 level.
Base Metal Outlook
• Copper prices are expected to face hurdle and trade with negative bias amid strong dollar and expectation of tighter monetary policy from US Federal Reserve. Meanwhile, steady growth in Chinses manufacturing activity and expectation of further progress in US manufacturing activity would provide support to prices. Additionally, falling copper production from Chile by 12.9% in May and depleting LME inventory levels would limit downside in the metal. Meanwhile, investors will focus on latest tariff structure from US Department of Commerce over new tariff on refined copper.
• MCX Copper July is expected to move in the band of Rs 1250 and Rs 1270 level. Only move above Rs 1270 it would open the doors towards Rs 1285.
• MCX Aluminum July is expected to slip towards Rs 326 - Rs 327 level as long as its stays below rs 335 level. MCX Zinc July is likely to hold support Rs 358 level and rise towards Rs 364 - Rs 366 level.
Energy Outlook
• NYMEX Crude is expected to remain range-bound between $68 and $72 today, as investors wait for more updates on ongoing U.S.-Iran peace negotiations at Doha. Meanwhile, the geopolitical outlook remains clouded by competing interests in the Strait of Hormuz. Iran maintains it will continue overseeing traffic through the Strait of Hormuz, even if Oman opts not to participate. Meanwhile, shipping through the strategic waterway showed recovery after the recent clashes. Furthermore, higher export from Iran since US lifted naval blockade and surge in Russian exports caused a sharp rise in barrels at sea which could weigh on prices.
• NYMEX crude oil is hovering in the band of $68 and $72 since last 2 sessions. A move below $68 it would turn weaker towards $65. MCX Crude oil July is likely to move in a wider range of ?6480-?6800 level. Only a move below Rs 6480, it would slip towards Rs 6200.
• MCX Natural gas July is expected to slid towards Rs 300 - Rs 295 level as long as it stays below Rs 320 level.
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