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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to face the hurdle near $2265 level and slip back towards $2230 level amid strong dollar and surge in US treasury yields. Yields and dollar are moving north as stronger than expected economic data from US raised the doubts among market participants that US Fed could deliver on 3 rate cuts outlined in FOMC economic projections. Focus will now turn towards today’s JOLTS job report and factory orders to get more understanding of the health of economy and fresh cues on policy path. Meanwhile, sharp downside may be cushioned on safe haven demand and central bank purchases amid geopolitical tensions

* MCX Gold June prices is likely to face hurdle near 68,900 level and slip back towards 67,900 levels. A sustain break below 67,900 would open doors for further downside towards 67,400 levels. Moreover, 14-day RSI lies in the overbought zone near 80, suggesting corrective pullback

* MCX Silver May is expected to rise further towards 76,500 level as long as it sustains above 10-day EMA around 74,900 level.

Base Metal Outlook

* Copper prices are expected to trade with the positive bias amid prospect of further supply tightness. Furthermore, positive industrial data from China and US would bolstered demand outlook for industrial metals. Additionally, expectation of more improved economic data from major countries would lend support to prices.

* MCX Copper is expected to move north towards 770 level as long as it stays above 10-day EMA around 758 level. A break above 770 would open doors for 774 levels

* Aluminum is expected to rise towards 211.0 level as long as it remains above 208.50 level

Energy Outlook

* NYMEX Crude oil is expected to rise further towards $85 levels as long as it hold the support near $82.60 levels on concerns over tight supplies due to OPEC+ output cuts and persistent attacks on Russian refineries. As per media report OPEC oil output fell last month, reflecting lower exports from Iraq and Nigeria. Furthermore, prices may rally on escalating tension in Middle East as Israel struck an Iranian consulate in Syria. This comes ahead of meeting by OPEC joint monitoring Ministerial committee where group is not expected to make any fresh recommendations on policy.

* MCX Crude oil is likely to rise towards 7080 levels as long as it trades above 6880 levels. A sustain break above 7080 level would open doors for 7150 levels

* MCX Natural gas April is expected to rise further towards 50-day EMA of 160 levels as long as it stays above 20-day EMA around 146 levels. Prices may move north on forecasts for colder than normal weather for the western and eastern parts of the US

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