MCX Zinc March is likely to face resistance near Rs326 level and move lower towards Rs318 level - ICICI Direct
Bullion Outlook
* Spot gold is expected to move in a wide range of $4,600 per ounce and $4,800 amid ongoing uncertainty over de-escalation in the Middle East conflict. US President in his speech signaled that the Iran war is likely to last for two to three weeks. Further, he has also threatened that US will strike Iranian power plants if there is no deal in coming days. Meanwhile, investors will also eye on more cues and comments from Iran to get any clarity on de-escalation. Furthermore, a stronger dollar could hurt upside in the bullion prices.
* MCX Gold June is expected to move in a wide range of Rs150,000 and Rs155,000. Only a move above Rs155,000, it would rise towards Rs157,000. On the other hand, if prices break below Rs150,000, then we may see prices to slip towards Rs148,000
* Spot silver is hovering near $73 per ounce, which is expected to slip further towards $70 mark. MCX Silver May is expected to face hurdle near Rs246,000 and move lower towards Rs236,000
Base Metal Outlook
* Copper prices are expected to face resistance and move lower amid strong dollar and uncertainties over Middle east conflict. Meanwhile, better than expected manufacturing activity in China and US would limit its downside. Furthermore, prices would get support from steady demand from China . The recent jump in the Yangshan copper premium to $68 per tonne indicates a steady recovery in Chinese appetite for imported copper.
* In the near term MCX Copper April is expected to move in the band of Rs1155 and Rs1175. Only a move above Rs1175 it would rise towards Rs1184.
* MCX Aluminum March is expected to find the support near Rs348 and rise towards Rs358 level amid persistent supply concerns form the Middle east.
* MCX Zinc March is likely to face resistance near Rs326 level and move lower towards Rs318 level.
Energy Outlook
* NYMEX crude oil has reversed its yesterday’s losses and gained nearly 3% after the US president warned the US would hit Iran "extremely hard" over the next two to three weeks, aiming to bring them back to the "stone ages" if a deal is not reached. Any attacks on Iranian oil facilities in coming weeks would hurt supplies and bring more volatility in oil prices. Furthermore, his speech failed to provide any clarity on reopening of Strait of Hormuz which still remains closed.
* NYMEX crude oil is expected to move higher towards $107, as long as it holds above $98. Only a move above $107 it would move towards $110 mark. MCX Crude oil April is likely to move in a broader range of Rs9200 and Rs9900. Only a move above Rs9900 it would rise towards Rs10,000.
* MCX Natural gas April future is expected to find the floor near Rs262 and rebound towards at Rs280
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