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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to face a hurdle near $1975 and weaken towards $1940 amid a recovery in the dollar. Further, some Fed policymakers struck a hawkish tone and signalled that rate hikes would likely resume. As per CME Fed watch tool, the market is pricing in an about 72% chance of a Fed rate hike in July

• MCX Gold prices are likely to face a hurdle of 20 day EMA at | 59,700 and weaken towards | 59,000 levels

• MCX Silver is expected to follow gold and move towards | 72,000 as long as it trades below | 73200 level

Base Metal Outlook

• Copper prices are expected to hold on to their gains amid hopes of more stimulus from China to boost economic growth. However, sharp upside could be capped amid increasing inventory levels at LME registered warehouses

• MCX Copper has been hovering around the 200 day EMA at 732. Prices have to sustain above 732 to extend their rally further towards 738. Below 730 it is expected to slide towards 726

• MCX aluminium is expected to consolidate between | 204 and | 207

Energy Outlook

• Crude oil prices are likely to hold on to their gains on expectations of higher demand from China and a seventh straight drop in number of oil rigs operating in the US. However, sharp upside may be capped on rising supplies from Iran. Crude oil shipments from Iran have surged to five-year highs despite US sanctions. Further, rising borrowing cost in western economies could also restrict its upside

• MCX Crude oil is likely to hold support of | 5720 and rise back towards | 5900. Above | 5900 it would rise towards | 5980

• MCX Natural gas is expected to find support near | 208 and rise back towards | 220 on forecasts of higher temperature in Texas and some parts of the US

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