COMMODITIES UPDATE: MCX July silver is 1,02,175 to 1,07,815
ENERGY: The MCX July crude futures could trade within the range of 5,325 to 5,900
MUMBAI, 25 JUNE: Crude oil and gasoline sold off sharply Tuesday to 1-1/ 2 week lows after President Trump announced a ceasefire in the Israel-Iran conflict. This reduced concerns about a disruption to Middle Eastern crude supplies and removing some of the geopolitical risk built into crude prices. Losses in crude oil accelerated on Tuesday after President Trump said that China can continue buying Iranian oil, bolstering speculation that the US may soon relieve some sanctions on Iranian crude exports. International crude prices rose on Wednesday morning trading in Asia as investors weighed the durability of the Iran-Israel ceasefire.
The MCX July crude futures could trade within the range of 5,325 to 5,900.
NYMEX and MCX prices Tuesday fell for a third consecutive session and sank to a 1-week low.
Prices are under pressure due to forecasts for cooler US temperatures that will potentially reduce demand from electricity providers to run air conditioning. Forecaster Atmospheric G2 said Tuesday that forecasts shifted cooler for parts of the southwestern and south-central US for June 29 to July 3. NYMEX gas futures rose on Wednesday morning trading in Asia ahead of inventory data this week.
The MCX July NG futures could trade within the range of 305 to 335.
BULLION: The range for MCX August gold is 94,900 to 99,675
Precious metals on Tuesday fell sharply, with gold posting a 2-week low. An easing of geopolitical risks sparked a rally in global equity markets and prompted long liquidation pressures in precious metals on Tuesday. Precious metals added to their losses Tuesday on hawkish comments from Fed Chair Powell, New York Fed President Williams, and Atlanta Fed President Bostic, who signalled the Fed is in no hurry to cut interest rates. Although downside remained capped on Tuesday after the dollar slid to a 1-week low. Fund buying of gold continues to support prices as gold holdings in ETFs rose to a 1-3/4-year high Monday. International and domestic gold and silver prices started with gains on Wednesday morning in Asian trading recovering from a two-week low, as markets weighed the stability of the Iran-Israel ceasefire. Although, upside could be capped after hawkish comments from Fed Chair Powell. On the economic calendar front, Building Permits and New Home Sales data could be a key trigger for the markets. Fed Chair Powell Testimony continues for a second day, where he could continue to remain hawkish and cap upside.
The range for MCX August gold is 94,900 to 99,675, while that for MCX July silver is 1,02,175 to 1,07,815.
BASE METALS: The range for the MCX July copper is between 874 to 892.
International copper prices ended higher on Tuesday’s trade. Rest of the metals also ended mixed on Tuesday’s trade. Copper is slightly higher on week as exchange inventories continue to dwindle. Traders have been redirecting metal to the U.S. in a bid to get ahead of a potential U.S. copper import tariff. LME inventories of copper are now down more than 63% year to date at 99,000 MT, worsening an already tight market environment. Although, Chinese import premiums have slid, potentially indicating softening demand fundamentals which capped upside. LME and COMEX copper started higher on Wednesday morning in Asian trading as investor sentiment improved following US President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran. Hawkish comments from Fed Chair Powell could cap upside. Although downside remained capped after the dollar remained under pressure this Wednesday morning.
The range for the MCX July copper is between 874 to 892.
Most other metals on MCX started with small gains this Wednesday morning trade, tracking overseas prices.
Domestically, the range for MCX aluminium July is 245 to 250, while that for MCX zinc July is 252 to 258, and that for MCX lead July is 180 to 182.
(note on Commodity by Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities)
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)
(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)
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