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GLOBAL MARKET ROUND UP

Commodity prices traded mixed on Wednesday with Bullion prices pared daily gains with dollar recovery ended in red. Base metals witnessed strong come back with demand growth optimism and supply concerns from Chile. Crude oil prices traded firm in upper range after bullish weekly inventory data. The dollar index recovered from the recent lows ended 0.45% up for the day.

The recent comments from multiple Fed officials reflect a shifting tone at the central bank. More recently policymakers have acknowledged they are closer to debating when to scale back crisis support for the U.S. economy

Asian shares retreated from two-week highs on Thursday and China started on the backfoot on fears central banks were closer to considering winding back their emergency stimulus while the dollar held at a one-week top.

BULLION

Bullion prices traded firm on Thursday with spot gold prices at COMEX were trading near $1897 per ounce while spot silver prices at COMEX were trading flat at $27.65 per ounce in the morning trade. The precious metals reversed gains on Wednesday with Gold prices fell below $1900 per ounce on stronger dollar as investors gauged inflation worries. Federal Reserve Vice Chairman for Supervision Randal Quarles said on Wednesday that it will be important for the U.S. central bank to begin discussing in coming months plans to reduce its massive bond purchases.

We expect bullion prices to trade sideways to up for the day. MCX Gold June resistance for the day lies at Rs. 49000 per 10 grams with support at Rs. 48500 per 10 grams. MCX Silver July support lies at Rs. 70200 per KG, resistance at Rs. 72800 per KG.

ENERGY

Crude oil prices traded weak with benchmark NYMEX WTI crude oil prices were trading 0.59% down near $65.82 per barrel in the morning trade. Crude oil prices traded under pressure on possible return of Iranian supply and weaker demand from emerging economies. The weekly US inventory draw failed to support prices on Thursday while stronger dollar also capped upside. The traders and investors remained vary on mixed fundamentals which has kept oil prices in range.

We expect crude oil prices to trade sideways to down for the day. MCX Crude Oil June support lies at Rs. 4730 per barrel with resistance at Rs. 4890 per barrel.

BASE METALS

Base metals prices traded mixed on Thursday with most of the metals held steady trading range except Nickel. Copper hovered on mixed global cues on supply concerns from Chile and China policy action fears. Base metals traded under pressure on stronger dollar and expectations that China may consider to wind back emergency stimulus to cool down over heating prices.

Base metals are expected to trade sideways to down for the day. MCX Copper June support lies at Rs. 739 and resistance at Rs. 754. MCX Zinc June support lies at Rs. 231, resistance at Rs. 237. MCX Nickel June support lies at Rs. 1240 with resistance at Rs. 1280.

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