MCX Silver May is expected to move in the range of Rs.213,000 and Rs.230,000 - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot gold is expected to consolidate in the band of $4350 and $4500 per ounce amid ongoing uncertainties over Middle east conflict. Prices would face hurdle near $4500 and move lower towards $4350 amid stronger dollar and higher US treasury yields. Continued geopolitical tension in the Middle East is driving oil prices higher, increasing inflation fears and reducing the likelihood of immediate rate cuts by the Federal Reserve. Meanwhile, US President Donald Trump has pledged to refrain from targeting Iranian energy facilities until April 6, which could bring a sign of relief to the investors and lower volatility in prices
* MCX Gold April is expected to face hurdle near Rs.145,200, and move lower towards Rs.138,000 . Only a move below Rs.138,000, it would turn weaker towards Rs.135,000.
* MCX Silver May is expected to move in the range of Rs.213,000 and Rs.230,000. A move below Rs.212,000 it would turn weaker towards Rs.205,000.
Base Metal Outlook
* Copper prices are expected to remain under pressure amid strong dollar and heightened geopolitical uncertainties. Escalating US-Iran tensions would hurt demand outlook. Furthermore, rising inventory levels in LME would also restrict any major upside in prices. Meanwhile, a surprise jump in the Yangshan copper premium which currently rose to $67 per tonne indicates a steady recovery in Chinese appetite for imported copper, rising from $42 earlier in the month. Moreover, better than expected industrial profit numbers from China would also support prices.
* In the near term MCX Copper April is expected to move in the band of Rs.1130 and Rs.1150. Only a move below Rs.1130 it would turn weaker
* MCX Aluminum April is expected to hold above Rs.330 and rise towards Rs.340 level.
* MCX Zinc April is likely to hold support near Rs.302 level and move higher towards Rs.314 level.
Energy Outlook
* NYMEX crude oil fell towards $92 per barrel after US President extended the deadline for Tehran to secure a deal or face further attacks by another 10 days. For the day, NYMEX crude is likely to remain volatile and move in a broader range of $88 and $98. Meanwhile, Iran confirmed it has rejected the US’ 15-point plan to end the war and submitted its own conditions. These conflicting comments and no sign of a deal between US and Iran likely to keep oil prices volatile.
* MCX Crude oil April is likely to move in a broader range of Rs.8600 and Rs.9250. Only a move below Rs.8600 it would slip towards Rs.8400.
* MCX Natural gas April future is expected to slip towards Rs.272-273 zone as long as it trades under Rs.290. NYMEX natural gas is expected to correct further amid easing heating demand in US.
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