Spot gold is expected to move in a range ahead of the FOMC meeting - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is expected to move in a range ahead of the FOMC meeting. On the upside $2350 would act as major hurdle and $2300 would be the key support in the near term. Forecast of improved economic numbers from US and diminishing safe haven bets would limit the upside in the bullions. Further, growing probability of higher for longer interest rates by the Federal reserve would also weigh on the precious metals.
* MCX Gold June is expected to face the hurdle near 71900 and move lower towards 71000. Only close below 71000, it would turn weaker and slide further towards 70600.
* MCX Silver July is expected to face the resistance at 83200 and slip towards 81500. Only a move below 81500, it would open the doors towards 80400.
Base Metal Outlook
* Copper prices are likely to extend its rally amid forecast of a potential shortfall in the coming year and depleting inventories. Further, improved risk sentiments and optimism from the Chinese property sector would boost the prices to stay elevated. Moreover, growth in the manufacturing sector in China would support the demand outlook of the metal. Meanwhile, growing prospects of higher interest rates for longer period by the Fed could restrict its upside.
* For the day MCX Copper May is likely to hold the support near 866 and move higher towards 878. A sustained move above 878 would open the doors towards 884.
* Aluminum May future is expected to hold 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 trade lower amid growing prospects of ceasefire between Israel and Hamas. Ceasefire talks in Cairo tempered the fears of wider Middle East conflict and lowered the risk premiums in the oil prices. Furthermore, increasing bets of higher for longer interest rates by the Fed would also check any major upside in the oil prices. Meanwhile, improved economic number from China and higher risk appetite could support the NYMEX crude to hold above the $81 mark. China’s official manufacturing PMI data showed activity in sector expanded for 2 nd consecutive month
* 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 rise towards 174, as long as it holds above the 162 mark. Forecast of improved demand from the electricity providers due warmer temperature could boost its demand.
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