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GLOBAL MARKET ROUND UP

Commodity prices traded mixed on Thursday with Bullion prices ended in green halting two days decline. Base metals prices traded weak on China’s move to curb rising metals prices causing inflation worries. Crude oil futures traded lower on resumed supply in US and demand worries

U.S. shares rebounded on Thursday after falling for three consecutive days and benchmark Treasury yields dipped, as investors snapped up stocks that would benefit from an economic recovery and shrugged off worries about rising prices, for now.

The U.S. consumer-price index rose 4.2% from a year ago, compared with average economists estimates surveyed by Econoday for a 3.6% increase. The month-over-month rise was 0.8%, versus a forecast for a rise of 0.2%

BULLION

Bullion prices traded steady on Friday with spot gold prices at COMEX were trading near $1822 while spot silver prices at COMEX were trading down at $26.97 in the morning trade. The precious metals are trading under pressure on stronger dollar and inflows into riskier assets. The US inflation data failed to cheer gold prices as investors weighed gold prices over US economic recovery.

In India, people will celebrate auspicious “Akshay Tritaya” today, where buying gold is believed to be a good omen.

We expect bullion prices to trade sideways to down for the day. MCX Gold June resistance for the day lies at Rs. 47800 with support at Rs. 47100. MCX Silver May support lies at Rs. 69000, resistance at Rs. 71500.

ENERGY

Crude oil prices traded weak with benchmark NYMEX WTI crude oil prices were trading 0.30% down near $63.63 per barrel in the morning trade. Crude oil prices witnessed after the Colonial Pipeline resumed operations after shutting down late last week in response to a ransomware attack. Crude oil prices have declined from resistance level of $68 on demand worries from pandemic hit India, the third largest oil consumer.

We expect crude oil prices to trade sideways to down for the day on weak global cues. MCX Crude Oil May support lies at Rs. 4630 per barrel with resistance at Rs. 4750 per barrel.

BASE METALS

Base metals prices traded lower with most of the metals witnessed selling form recent highs. Base metals complex traded down as investors rush to book profits from overbought territory after China signalled actions to curb higher inflations due to recent surge in industrial metals. China’s Premier Li Keqiang highlighted stronger coordination of monetary policy. The traders and investors are also looking at the slowdown in China’s credit growth in April, as authorities seek to slowly wind back pandemicfueled stimulus.

Base metals are expected to trade sideways to down for the day. MCX Copper May support lies at Rs. 772 and resistance at Rs. 790. MCX Zinc May support lies at Rs. 227, resistance at Rs. 234. MCX Nickel May support lies at Rs. 1250 with resistance at Rs. 1320.

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