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Bullion Outlook

• Comex gold prices declined almost 1.0% on Friday amid a surge in US dollar index and on improved non farm payrolls data from the US

• The US economy added 390,000 jobs in May, better than the expected 325,000 despite fears of an economic slowdown, the Bureau of Labor Statistics data showed on Friday

• However, pessimistic sentiments in US markets and rising inflationary pressures restricted further downsides in safe haven assets

• MCX gold prices are expected to trade with a negative bias due to firmer dollar index. It is facing resistance at 50 DMA, which is around | 51,360 levels. As long as it sustains below this level, it is likely to retest | 50,500 levels in the coming sessions. Silver prices are also expected to take cues from gold prices and may move towards | 61,000 levels for the day

Base Metal Outlook

• MCX Copper and other industrial metals prices retreated on Friday amid disappointing Markit composite PMI data from the US

• Markit composite PMI index eased to 53.60 in May 2022 compared to 56 levels in the previous month, which was the slowest in four months due to inflationary pressures, supply constraints and weaker demand growth

• However, sharp downsides were prevented on significant decline in LME inventories and supply disruptions from Peru’s copper mine

• MCX copper prices are expected to correct further towards | 788 for the day due to uptick in dollar index and worries over slowdown in global economic growth

Energy Outlook

• WTI crude oil prices surged almost 3.0% on Friday supported by rising demand as China eases Covid-19 lockdown restrictions

• The Organization of the Petroleum Exporting Countries and allies, known as Opec+, on Thursday agreed to boost output by 648,000 barrels per day (bpd) a month in July and August rather than 432,000 bpd as previously agreed

• As per the Baker Hughes report released on Friday, the oil and gas rig counts were flat at 727 in the last week

• MCX Crude oil price is expected to trade with a positive bias due to higher fuel demand from US and worries over decline in global crude oil stockpiles. It is trading above the resistance levels of | 9,160 levels. As long as it sustains above this level, it is likely to rally towards mean +2 sigma levels of | 9,415 in the coming days

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