MCX Silver July is expected to face the resistance at 83400 and slip towards 81500 - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is expected to face the hurdle near $2355 and move towards the psychological support at $2300 amid stronger dollar. Growing probability of higher for longer interest rates by the Federal reserve after last week’s PCE data would check the upside in the bullions. June rate cut probability remained near the 10%, where as most investors are waiting for the comments from this weeks FOMC meeting to get more clues on the timing of first interest rate cut.
* MCX Gold June is expected to face the hurdle near 71800 and move lower towards 70600. Only close below 70600, it would turn weaker and slide further towards 70000.
* MCX Silver July is expected to face the resistance at 83400 and slip towards 81500. Only a move below 81500, it would open the doors towards 80400
Base Metal Outlook
* Copper prices are likely to hold its ground and trade higher amid tight supplies and improved economic optimism. Mine closure and subsequent tightness in the concentrate market would support the red metal to trade higher. Furthermore, strong inflow of money through investment funds would support the prices. Meanwhile, stronger dollar amid growing prospects of higher interest rates for longer period by the Fed could restrict its upside.
* For the day MCX Copper May is expected to find support near 854 and move towards 864. Only close above 864 it would rise towards 870.
* Aluminum May future is expected to find the support near 234 and move higher towards 240. Only close below 234 it would weaken towards 230 mark.
Energy Outlook
* NYMEX Crude oil is expected to trim its earlier gains and move back to the lower band of the consolidation range $81-$85 amid stronger dollar. Sticky inflation numbers dimmed the prospects of early rate cut by US Fed. Meanwhile, drop in oil rigs back to 506 after rising to 511 last week would provide some support to the oil prices. Further growing tension between Ukraine and Russia could hut the global supplies and lent some support to the oil prices. This week, focus will turn towards the Fed meeting and economic numbers from China which would bring further clarity in price trend.
* MCX Crude oil May future is likely to face the hurdle near 7050 and dip towards 6800. Only a move above 7050 it would turn bullish.
* MCX Natural Gas May future is expected to face the hurdle near 170 and move lower towards 158. A move below 158, would open the downside towards 154.
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