MCX Natural gas June is expected to slip towards Rs 295-Rs 290 level as long as it stays below Rs 320 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to remain under pressure amid firm dollar and rise in US treasury yields. Further, prices may slip as renewed hostilities in Middle East may weaken the hopes of imminent resolution between the US and Iran and reignite inflation concerns and higher interest rates for prolonged time. Recent batch of data showed US inflation came in line with expectations but accelerated to the fastest pace in more than 3 years, fueling ongoing worries that Fed will have to keep rates higher for longer time. Additionally, investors will remain cautious ahead of PPI data from US to get more cues on interest rate trajectory. Furthermore, market will keep an eye on ECB monetary policy, where central bank is likely to hike interest rates to curb rising inflationary pressure
• MCX Gold Aug is expected to slip towards Rs 147,000-Rs146,000 level as long as it stays below Rs151,500 level
• MCX Silver July is expected to rise back towards Rs 240,000-Rs 242,000 level as long as it stays above Rs 231,000 level.
Base Metal Outlook
• Copper prices are expected to trade with negative bias on firm dollar and risk aversion in the global markets. Further, prices may slip on concerns over escalating tension in Middle East after US and Iran exchange fires. Investors fear that rising energy cost linked to middle east conflict has heightened worries of persistent inflation and prospect of further monetary tightening across major economies, that could slow global economic growth and demand for metals. Additionally, Yangshan copper premium fell to $59 per ton, signaling softer import demand in China. Meanwhile, sharp fall in prices may be cushioned on latest headline that China is preparing to spend around 2 trillion yuan over the next 5 years on building data centers
• MCX Copper June is expected to slip towards Rs1305 level as long as it stays below Rs1330 level. A break below Rs1305 level prices may be pushed towards Rs1300-Rs1290 level
• MCX Aluminum June is expected to rise towards Rs375-Rs 378 level as long as its stays above Rs 368 level. MCX Zinc June is likely to face stiff resistance near Rs 365 level and slip towards Rs355-Rs352 level.
Energy Outlook
• NYMEX Crude oil is likely to trade with positive bias on fears that rising hostilities in Middle East may jeopardies the peace talks between US and Iran and threaten to reignite full-scale war. Further, Iran top military commander announced the closure of Strait of Hormuz and warned that any vessel trying to leave will be shot, rising concerns over oil supply. As per EIA crude stocks fell by 7.2 million barrels to 426.5 million barrels in the week ending 5 th June. Furthermore, prices may rise on fears that Yemen’s Houthis may try to block vessels in Red Sea, increasing risk around one of the key alternative route for Saudi Arabian oil making its way into market. • MCX Crude oil June is likely to hold support near Rs 8300 level and rise towards Rs 8900-Rs 9000 level
• MCX Natural gas June is expected to slip towards Rs 295-Rs 290 level as long as it stays below Rs 320 level
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