MCX Silver July is expected to rise towards Rs 255,000- Rs256,000 level as long as it stays above Rs 243,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to hold the support near $4250 level and rise towards $4380 level on expectation of further weakness in dollar and softening of US treasury yields. Further, prices may rally as US President Donald Trump said preliminary agreement to end war has been signed by US and Iran, easing fears about persistent inflation and potential rate hike by US Federal Reserve. Investors will keep an eye on agreement details and both nations has to negotiate on permanent truce. Meanwhile, sharp upside may be capped as investors will remain cautious ahead of US Federal Reserve monetary policy scheduled this week, first policy meet under the leadership of Kevin Warsh. Central bank is most likely to keep policy untouched but more focus will be on statements and dot-plot to get clarity on interest rate trajectory. Additionally, any discussion on reducing the size of the Fed's balance sheet will draw attention. MCX Gold Aug is expected to rise towards Rs 154,500- Rs 155,500 level as long as it stays above Rs 151,500 level
• MCX Silver July is expected to rise towards Rs 255,000- Rs 256,000 level as long as it stays above Rs 243,000 level.
Base Metal Outlook
• Copper prices are expected to trade with positive bias amid expectation of further weakness in dollar and improved global market sentiments. Further, prices may rally on ongoing concerns about US import tariffs and persistent decline in inventory at LME registered warehouses. Meanwhile, sharp upside may be capped as investors will remain cautious ahead of major central banks including US Fed, BOJ and BOE monetary policy decision. Market focus will be on whether the peace deal will ease their inflation concerns and influence near-term monetary policies
• MCX Copper June is expected to rise towards Rs 1350 level as long as it stays above Rs 1327 level. Only a break below Rs 1327 level prices may be pushed towards Rs 1320- Rs 1315 level
• MCX Aluminum June is expected to slip towards Rs 352- Rs 350 level as long as its stays below Rs 362 level. MCX Zinc June is likely to hold support near Rs 365 level and rise towards Rs 372- Rs 375 level.
Energy Outlook
• NYMEX Crude oil is likely to trade with negative bias on reports that preliminary agreement to end war has been signed by US and Iran and Strait of Hormuz could reopen on Friday, easing critical energy supply concerns. Moreover, prospect of additional Iranian oil reaching markets would weigh on prices. Furthermore, UK, France, Germany and Italy are also prepared to lift sanctions on Iran in response to steps on its nuclear programme. Meanwhile, sharp fall in prices may be cushioned as neither US or Iran has released details of agreement leaving investors guarded and prompting shipping companies to delay in sending vessels through route. Investors will also see how quickly Middle Eastern producers can resume oil production and exports following damage from the war. MCX Crude oil June is likely to face stiff resistance near Rs 7950 level and slip towards Rs 7300- Rs7200 level
• MCX Natural gas June is expected to rise towards Rs 310- Rs 315 level as long as it stays above ?285 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
