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GLOBAL MARKET ROUND UP

* Gold prices traded higher with spot gold at Comex was trading up by 0.35% at $1948 per ounce in the morning trade. Gold price recouped after declined by 0.80% in the previous session, however for the week price set for its biggest weekly drop in almost four months as signs of resilience in the US economy increased the likelihood the Federal Reserve will keep hiking rate.

* On the macro front, US GDP growth rose at a revised 1.3% annualized pace in the first quarter, while initial jobless claims were revised substantially lower

* Crude oil price turned bearish after Russia suggested OPEC and its alliance wasn’t likely to change production levels at its next meeting. Russian Deputy Prime Minister Alexander Novak said on Thursday he expected no new steps from the OPEC and its alliance group of oil producers at its meeting in Vienna on June 4, Russian media reported.

* Base metals price consolidated in lower range with negative bias as weak demand and strength in US dollar continued pressure on base metals. The US dollar hovered near tow months high against its major peers and was headed for a third weekly gain.

BULLION

* MCX Gold June future moved lower by 0.67% on Thursday while silver price bearish trend extended and price closed lower by 1.19% at 70242. Bullion has come under pressure this week after Fed officials advocated more action to curb inflation, diminishing expectations the central bank’s tightening campaign has ended. Traders have raised their bets on another hike by July, which would hurt nonyielding metals

Trading Strategy:

We expect gold price should consolidate in lower range after yesterday fall. Comex spot gold having supports at $1933/$1924 and resistance at $1980/$1995 for the day. MCX Gold June future having supports at Rs 59250/59080 and resistances at Rs 59700/60065. MCX Silver July future has supports at 70180/69600 and resistances at 70800/71480.

ENERGY

* Crude June future reversal seen on Thursday and price closed lower after three consecutive days gain as comment from Russian deputy prime minister Alexander Novak indicated no further oil production likely to cut. Crude futures are down about 9% this year, with China’s muted economic rebound and tighter US monetary policy combining to weigh on prices. While Natural gas price declined by 4.92% on Thursday.

Trading Strategy:

MCX Crude oil June future has immediate resistance at 6040 if price cross this level, then rally will likely to extend towards 6100 level. Area around 5920/5870 acts as short term supports for the day. Natural Gas June future has supports at 203/194and resistances at212/219

BASE METALS

Copper June future after hitting fresh swing low of Rs 689, recovered from day’s low on the back of short covering and closed marginally higher by 0.15% in the previous session. However, under ton remain weak in copper for short term. LME Zinc price slipped to their lowest since July 2020 on Thursday as weak demand for the metal used to galvanise steel pushed the market into surplus and exchange inventories rose.

Trading Strategy:

MCX Copper June future has support at 694 once price break support of 694 then fall will extend to 687/684 levels. Area around 709/712.80 acts as resistance for the day. MCX Zinc June future hit fresh swing low of 202 levels on Thursday. Zinc June future has immediate supports at 202/199 and resistances at 209.80/212.0 for the day.

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