MCX Silver July is expected to dip towards Rs 228,000 - Rs 225,000 level as long as it stays below Rs 238,000 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 dip amid growing uncertainty over peace deal between US and Iran. Uptick in fighting in southern Lebanon and US President Doanld Trump threatening to resume attacks on Iran threatened the agreement, reigniting inflation concerns and higher interest rates for prolonged time. Additionally, in the recent meeting US Federal Reserve decided to hold interest rate steady and signaled 1 rate hike by the end of the year. Moreover, stronger than expected economic data from US signal resilience in the economy adding to rate hike expectations. According to CME FedWatch tool markets are now pricing more than 70% chance of a U.S. rate hike in September.
• MCX Gold Aug is expected to slip further towards Rs 146,500- Rs 146,000 level as long as it stays below Rs 149,000 level
• MCX Silver July is expected to dip towards Rs 228,000 - Rs 225,000 level as long as it stays below Rs 238,000 level.
Base Metal Outlook
• Copper prices are expected to trade with negative bias amid strong dollar and risk aversion in the global markets. Market sentiments are hurt as uncertainty clouded a tentative peace deal between US and Iran following threats from President Donald Trump to restart the war in the Middle East and Iran’s announcement it had closed the Strait of Hormuz. Further, prices may slip on concerns that tighter monetary policy in major economies may push borrowing cost higher clouding outlook for global economic growth and industrial metal demands. Meanwhile, sharp fall in prices may be cushioned on ongoing concerns about US import tariffs and persistent decline in inventory at LME registered warehouses.
• MCX Copper June is expected to slip towards Rs 1295 level as long as it stays below Rs 1326 level. A break below Rs 1295 level prices may be pushed towards Rs 1290 - Rs 1285 level
MCX Aluminum June is expected to rise towards Rs 362 - Rs 365 level as long as its stays above Rs 354 level. MCX Zinc June is likely to face stiff resistance near Rs 372 level and slip towards Rs 362 - Rs 359 level.
Energy Outlook
• NYMEX Crude oil is likely to trade with positive bias amid growing uncertainty over peace deal between US and Iran following threats from US President Donald Trump to restart war in Middle East and Iran’s announcement that it had closed Strait of Hormuz. Moreover, investors will remain cautious as full recovery in Gulf oil flows will take time, as countries will need to fix war-inflicted damages. Meanwhile, sharp upside may be capped on strong dollar and hawkish US Federal Reserve stance. Further, despite of rising tensions, U.S.-Iran peace talks stretched into their 2 nd day in Switzerland under the terms of a memorandum of understanding.
• MCX Crude oil July is likely to rise towards Rs 7530 - Rs 7700 level as long as it stays above Rs 6900
• MCX Natural gas July is expected to rise towards Rs 315 - Rs 320 level as long as it stays above RS 297 level.
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