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GLOBAL MARKET ROUND UP

* Gold prices edged higher, with spot gold at Comex trading up by 0.21% at $1928 per ounce in the morning session. In the previous session, Comex spot gold prices rose by 0.11% as traders assessed increasing geopolitical uncertainty and recessionary signals. Still, the upside for the safe haven was limited after Prigozhin suddenly halted his dramatic advance towards Moscow over the weekend.

* Crude oil traded marginally higher on Tuesday after a choppy session following a short-lived armed uprising in Russia, a major OPEC+ producer. Russian President Vladimir Putin condemned the leaders of the Wagner mercenary group as "traitors," although his comments did little to clarify the mystery of the weekend’s events. Any prolonged turmoil would impact global oil markets.

* US stocks dropped, led by tech, as traders unwound their Fed cut bets. An early gain in Treasuries faded, with 10-year yields down 2 bps, and a monthly auction of two-year notes drew the highest yield since February. Asian equity futures are narrowly mixed.

* Base metals prices consolidated in range as investors looked for fresh cues. Official PMIs from China, due this week, should provide some insight into the demand outlook from the world's biggest metals consumer

BULLION

MCX Gold August contract settled higher by 0.18% at the Rs 58412 level on Monday amid recovery in overseas markets. While the silver July future surged nearly 1.62% and closed at Rs 69185 on the back of a short-covering rally after the price dropped around 7.0% last week, On the investment front, Exchangetraded funds cut 148,163 troy ounces of gold from their holdings in the last trading session, bringing this year's net sales to 533,228 ounces, according to data compiled by Bloomberg.

Trading Strategy: We expect the short-term trend to remain moderately bearish in gold, and selling pressure will likely see a near-resistance level of $1950. For the day, Comex spot gold has support at $1920 and resistance at $1950. MCX Gold August future has support at Rs 58080 and resistance at Rs 58850. MCX Silver July future has resistance at 70340 and support at 68780.

ENERGY

MCX Crude Oil July contract settled up by 1.09% at Rs 5737 on Monday, taking positive cues from the international market. Natural gas July future opened a gap up, and for the day, the price surged nearly 3.74% as demand for US LNG exports was seen rising and soaring temperatures were expected to boost cooling demand. U.S. power plants were seen consuming 41.1 bcfd of gas this week, up from 38.5 bcfd last week and growing to 44.5 bcfd next week

Trading Strategy: On the technical front, NYMEX WTI crude oil has resistance at $73.20; until prices trade below this level, the short-term trend remains weak. On the flip side, the area around $68.70 acts as support for the day. MCX Crude Oil July contract resistance is at Rs 5870, and support at Rs 5680 acts as support. MCX natural gas July future has support at 229 and resistance at 245

BASE METALS

MCX Copper July future price corrected by 0.33% and closed at the 716 level on Monday. The copper price flipped between gains and losses amid mixed fundamentals. Weak demand capped further upside, while short-term drops in inventory protected the downside. LME on-warrant copper inventories fell to 25,725 tons, the lowest level since October 2021. Inventories of the metal in SHFE and Chinese bonded warehouses have also been falling

Trading Strategy: MCX Copper July contract has a strong supply zone around 729–732, while an area around 717–714 acts as a key support level. We anticipate that the copper price will trade in the broader range of 717 to 729 in the short term, with a breakout opening the door to further direction. MCX Zinc July future has support at 212 and resistance at 219 for the day

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