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GLOBAL MARKET ROUND UP

Commodity prices traded lower with most of the non-agro commodities ended in red on stronger dollar. Bullion prices witnessed sell off on FED hawkish stance while base metals traded lower on weaker demand from China. Crude oil prices pared early gains witnessed selling in last trading session with broad selling in commodities. The dollar index rallied by 0.83% nearing 92 mark for the day.

U.S. stock benchmarks put in a mixed performance Thursday, with technology and other growth-oriented shares rallying, but the Dow Jones Average fell for a fourth day, after the Federal Reserve rattled the markets Wednesday by raising its forecast for inflation and signaling that it could lift benchmark interest rates sooner than had been expected.

US claims for unemployment benefits rose 37,000 to 412,000 in the week ended June 12 — the highest level in a month.

BULLION

Bullion prices traded firm on Friday with spot gold prices at COMEX were trading near $1786 per ounce while spot silver prices at COMEX were trading more than 1% up at $26.20 per ounce in the morning trade. The precious metals witnessed sell off on stronger dollar on US FED tapering signal. The FED hinted hawkish stance by 2023 which boosted buying in dollar with outflow from safe haven asset. Bullion prices may see some pullback while short term bias to remain bearish.

We expect bullion prices to trade sideways to down for the day. MCX Gold Aug resistance for the day lies at Rs. 47500 per 10 grams with support at Rs. 46800 per 10 grams. MCX Silver July support lies at Rs. 67000 per KG, resistance at Rs. 69800 per KG.

ENERGY

Crude oil prices traded lower on Friday with benchmark NYMEX WTI crude oil prices were trading 0.72% down at $70.53 per barrel in the morning trade.

Crude oil prices traded lower as stronger dollar continued pressure on commodities on hawkish FED. The dollar rally has lower demand outlook for oil in terms of other currencies. Crude oil prices traded weak on added pressure from possible revival of nuclear deal with Iran.

We expect crude oil prices to trade down for the day. MCX Crude Oil June support lies at Rs. 5160 per barrel with resistance at Rs. 5320 per barrel.

BASE METALS

Base metals prices traded firm on Friday with most of the metals recovered from previous losses. Base metals rebounded on softer dollar after two days rally after US FED signalled rate hike. Base metals fundamentals are mixed with China crackdown and reports of release from state reserves. On other side, economic recovery from US and eased COVID restrictions in Europe has lifted demand outlook for industrial metals.

Base metals are expected to trade sideways to up for the day. MCX Copper June support lies at Rs. 695 and resistance at Rs. 708. MCX Zinc June support lies at Rs. 231, resistance at Rs. 238. MCX Nickel June support lies at Rs. 1260 with resistance at Rs. 1310.

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