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GLOBAL MARKET ROUND UP

Commodity prices traded mixed with Bullion prices kept lower trading range on stronger dollar while Crude oil prices pared gains ended in red post inventory data. Base metals kept narrow trading on lack of economic data and mixed global cues. The dollar index ended 0.05% up for the day.

U.S. stock benchmarks finished lower, losing steam in the session’s final half-hour, ahead of an eagerly awaited inflation report due Thursday, which could set the tone for the broader financial markets.

A May reading of the U.S. consumer-price index due on Thursday morning is expected to be the main event of the week. The headline consumer-price index is expected to rise by an outsized 0.5% in May and 4.8% for the year.

BULLION

Bullion prices traded weak on Thursday with spot gold prices at COMEX were trading near $1886 per ounce while spot silver prices at COMEX were trading marginal down at $27.70 per ounce in the morning trade. The precious metals kept lower trading range with steady dollar and despite of fall in US treasury yields. The market is awaiting for fresh cues from US inflation data due today. The 10 year US Treasury yields fell below 1.50% followed by strong auction. The US CPI data will lead to more clarity ok FED's policy actions.

We expect bullion prices to trade sideways to down for the day. MCX Gold Aug resistance for the day lies at Rs. 49500 per 10 grams with support at Rs. 48800 per 10 grams. MCX Silver July support lies at Rs. 70200 per KG, resistance at Rs. 72800 per KG.

ENERGY

Crude oil prices traded lower on Thursday with benchmark NYMEX WTI crude oil prices were trading 0.77% down at $69.42 per barrel in the morning trade. Crude oil prices traded under pressure on demand worries from US summer driving season wit rise in product inventories. U.S. gasoline inventories rose by more than 7 mb for a second weekly gain while weekly crude oil inventories fell by 5.2 mb.

We expect crude oil prices to trade sideways to down for the day. MCX Crude Oil June support lies at Rs. 5020 per barrel with resistance at Rs. 5160 per barrel.

BASE METALS

Base metals prices traded weak on Thursday with most of the metals traded under pressure in the morning trade. Base metals traded weak on demand concerns from China and mixed global cues ahead of US inflation data. The US consumer price data will be one of the last major economic reports before the Fed’s next policy meeting. Copper prices are fluctuating on mixed fundamental with supply concerns from Chile.

Base metals are expected to trade sideways to down for the day. MCX Copper June support lies at Rs. 735 and resistance at Rs. 748. MCX Zinc June support lies at Rs. 232, resistance at Rs. 242. MCX Nickel June support lies at Rs. 1290 with resistance at Rs. 1350.

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