NYMEX Crude oil is expected hold the support near $78 and move towards $81 amid ongoing tension in the Middle East - ICICI Direct
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Metal’s Outlook
Bullion Outlook
Spot gold is expected to trade with a positive bias amid fresh hopes of interest rate cut and geopolitical risk. Israel’s rejection of the Hamas ceasefire proposal despite Hama’s agreement to the proposal of the mediators would support the safe haven demand of the bullions. Meanwhile, increasing bets that the Federal Reserve will reduce the rates in September after last weeks softer US jobs report would support the bullions to move higher.
MCX Gold June is expected to hold the support near 70850 and extend its rally towards 71780. A move above 71780 would open the doors towards 72400.
MCX Silver July is expected to hold its gains and move towards the initial hurdle at 83600. It has to move beyond 83600 to resume its rally towards 84500. On the lower side 82000 hold as key support to the trend.
Base Metal Outlook
Copper prices are expected to hold its gains and trade with a positive bias on expectation of potential supply deficit this year. Tightness in the copper market has been weighing on margins at Chinese smelters. Strong demand growth from the renewable energy and power grid space would support the metal to trade higher. Moreover, improved risk sentiments and optimism from the Chinese property sector would boost the prices to stay elevated
For the day MCX Copper May is likely to hold the support of 5 day EMA at 860 and move higher towards 874. Only a move below 860, it would correct towards the immediate support at 848.
Aluminum May future is expected to find the floor near 230 and rebound towards 237. Only close below 230 it would turn weaker.
Energy Outlook
NYMEX Crude oil is expected hold the support near $78 and move towards $81 amid ongoing tension in the Middle East. Rejection of the ceasefire proposal by Israel sparked the fear of supply risk and support the energy prices to regain its strength. Furthermore, softness in the dollar amid growing bets of rate cut by the Fed in this year would support the oil to rise towards the $81 mark.
MCX Crude oil May future is expected to find the floor near 6500 and move towards the initial hurdle at 6700. Only, move below 6500 it would turn bearish.
MCX Natural Gas May future is expected to hold the support at 178 and move higher towards 190. An increase in demand form the US electricity providers on forecast of hot weather forecast in Texas and lower US production would support the gas prices to hold its gains.
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