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GLOBAL MARKET ROUND UP

* Gold prices traded down with spot gold at Comex was trading lower by 0.15% at $1940 per ounce in the morning trade. Gold prices hovered near its recent low as the chances of the US debt-ceiling deal being passed reduced safe haven demand, and also its impact on government spending. Dollar index remains elevated, near a six-week high, another headwind for the yellow metals.

* Crude oil fluctuated in narrow range over mixed fundamentals. Sentiment improved as progress on approval for a US debt-ceiling deal to avert a default while China’s lackluster economic recovery following the end of Covid Zero and the Federal Reserve’s aggressive monetary tightening campaign weighed on the demand outlook.

* Base metals price moved higher on Monday on the back of bargain hunter active at lower level. Additionally, market expect that the People’s Bank of China likely to cut its reserve requirements for major banks earlier than expected to boost growth.

* Asian stocks were mostly higher on Tuesday as investors cheered the prospect that the world's largest economy will avert a major debt default, improving sentiment across most asset classes.

BULLION

MCX Gold June future consolidated in lower range throughout yesterday session as thin volume due to US market shut for the Memorial Day holiday. Upside capped by optimism about US debt ceiling deal, U.S. President Joe Biden said on Monday he feels good about prospects for passage by Congress of the debt ceiling deal that he reached with House of Representatives Speaker Kevin McCarthy..

Trading Strategy:

Trading Strategy: We expect gold price should consolidate in lower range with negative bias and fall will likely extend once price breaks support of $1933. Comex spot gold having supports at $1933/$1919 and resistances at $1965/$1980 for the day. MCX Gold August future having supports at Rs 59240/59080 and resistances at Rs 59680/59880.

ENERGY

MCX Crude oil June future closed up by 0.53% at Rs 6036 as sentiment improved after-market optimism about US debt ceiling deal. Reaching the deal and coming closer to avoiding a default on U.S. debt renewed investor appetite for riskier assets. Additionally, price got support from comment by Saudi energy minister Abdulaziz bin Salman who warned short-sellers betting that oil prices will fall to "watch out" for pain

Trading Strategy: We expect crude oil price likely to trade within the range before OPEC and its alliance meeting outcome which is scheduled on 4th June. NYMEX WTI Crude oil likely to trade in range of $69.0 to $75.0 and having resistances at $74.400/$75.80 levels and find supports at $70.8/ $69.70 levels. MCX Crude Oil June future having supports at Rs 5920/5870 and resistances at Rs 6070/6135

BASE METALS

Base Metals price traded higher on Monday as risk sentiment improved after U.S. leaders reached a tentative debt ceiling deal, possibly averting a default in the world's largest economy, however concerns about further interest rate hikes and weak demand capped gains. On the macro front, investors will be looking for manufacturing PMI data from China, the world's top metal consumer

Trading Strategy:

MCX Copper June future has resistance at 723 until price trade below this level buying should avoid. Area around 705/694 act as supports for the day. MCX Zinc June future should consolidate in range of 205 to 215 either side break out will open new range for the counter

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