MCX Silver July is expected to face resistance near Rs.102,000 level and move towards immediate support at Rs.99,000 level - ICICI Direct
Bullion Outlook
• Spot Gold is expected to rise further towards $3400 amid weakness in dollar and softening of U.S. treasury yields. Further, demand for safe haven may increase on escalating trade tension between US and China. Investors fear that uncertainty over tariffs may impact trade talks. China has accused US of unilaterally introducing new discriminatory trade restriction. In addition, dovish Fed comments has fueled the chance of more rate cuts in this year. Furthermore, prices would get support amid geopolitical tensions in Ukraine and the Middle East
• Spot gold is likely to rise towards $3400 level as long as it stays above $3340 level. MCX Gold Aug is expected to rise towards Rs.98,000 level as long as it stays above Rs.96,500 level
• MCX Silver July is expected to face resistance near Rs.102,000 level and move towards immediate support at Rs.99,000 level. Only break above Rs.102,000 level prices may open the doors towards Rs.103,500 level
Base Metal Outlook
Copper prices are expected to take a pause in its rally amid trade tension and easing worries over tariffs on Copper imports. Further, disappointing economic data from U.S. raised concerns over slowdown in economic activity. Moreover, sluggish growth in manufacturing activity in China would also restrict any major up move. China’s manufacturing activity contracted again and hit lowest level since September 2022. Manufacturing output in May declined alongside a renewed fall in new orders. Export orders also shrank at a faster pace. Meanwhile, weakness in dollar and threat to global copper supply may cushion sharp fall in prices.
• MCX Copper June is expected to slip towards Rs.860 level as long as it stays below Rs.874 level. On contrary, a break above Rs.874 level prices may rally towards Rs.880 level
• MCX Aluminum June is expected to hold the support at Rs.236 level and move higher towards Rs.241 level. MCX Zinc June is likely to move north towards Rs.257 level as long as it stays above Rs.250 level.
Energy Outlook
• Crude oil is likely to hold its gains and move towards $64 mark amid ongoing geopolitical tension. No result from the 2 nd direct peace talks between Russia and Ukraine has dampened hopes of any resolution. Meanwhile, disappointing economic data from U.S. signals crack in economy and deteriorating outlook. Furthermore, higher supplies from OPEC+ in July would restrict any major upside in oil prices. Moreover, renewed trade tensions would also weigh on investor sentiments.
• On the data front a strong call base at $65 would act as major hurdle for now. As long as it resists prices are likely to consolidate in the band of $60 and $65 per barrel
• MCX Crude oil June is likely to hold the support at Rs.5200 level and move higher towards Rs.5400 level.
• MCX Natural gas June is expected to rise towards Rs.324 level as long as it stays above Rs.305 level.
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