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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to find support near $2320 levels and rise back towards $2355 level amid weakness in dollar and softening of US treasury yields. Speculators boosted their net-long positions in Comex futures by 23087 contracts in the week to 21st May, signaling investors remains bullish. Meanwhile, better than expected economic data from US tamed hopes of early interest rate cut by US Fed. Public holiday in the US expected to keep trading relatively thin. Spot gold is likely to hold the support near $2320 level and rise back towards $2355 level (20-Day EMA). On Contrary, break below $2320 level prices may slip towards $2300 (50-Day EMA)

• MCX Gold June prices is likely to rise back towards 71,800 level as long as it stays above 70,800 level. A break above 71,800 level prices may rise further towards 72,200 level (20-Day EMA).

• MCX Silver July is expected to follow gold and rise towards 92,000 level as long as it stays above 89,900 level (10-Day EMA)

Base Metal Outlook

• Copper prices are expected to continue with its negative bias amid risk aversion in the global markets and signs of soft demand in China. Furthermore, better than expected economic data from major counties led to the speculation that interest rates would remain higher for longer. Investors fear that higher borrowing cost for longer duration would hurt economic growth and dampen industrial metal demand. Physical demand in China, has been dampened by the high prices

• MCX Copper is expected to slip further towards 875 level as long as it stays below 886 level. A break below 875 level prices may move further south towards 870 level

• Aluminum is expected to move north towards 245 level as long as it stays above 239.50 level (10-Day EMA). On contrary, break below ICICI Securities – Retail Equity Research ICICI Securities – Retail Equity Research 3 Source: Bloomberg, Reuters, ICICI Direct Research 239.50 level prices may slip towards 237 level (20-Day EMA)

Energy Outlook

• NYMEX Crude oil is expected to rise towards $79 level amid weakness in dollar. Further, market awaits OPEC+ meeting scheduled on June 2 as producers are expected to discuss whether to extend voluntary output cuts of 2.2mbpd into the second half of the year. Additionally, prices may move up on expectation that demand is set to pick up with the travel-heavy summer season. Meanwhile, trading volumes expected to be limited amid market holidays in the US and UK. NYMEX crude oil may rise further towards $79 level as long as it stays above $76.50 level.

• MCX Crude oil June is likely to rise towards 6600 levels as long as it trades above 6350 level

• MCX Natural gas June is expected to slip further towards 230 level as long as it stays below 240 level. A break below 230 level will open doors for 224 level

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