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Bullion Outlook

• Spot Gold is expected to take a pause in its rally and move in the band of $3325 and $3400 ahead of key US jobs data this week. Prices may find support amid geopolitical tension between Russia and Ukraine. Further, demand for safe haven may increase on escalating trade tension between US and China. Investors fear that uncertainty over tariffs may impact trade talks. In addition, growing bets of further rate cut by ECB would provide support to the bullions. Meanwhile, all focus will remain on today’s key US private payroll numbers which would bring more volatility in price.

• Spot gold is likely to rise towards $3400 level as long as it stays above $3325 level. A strong call base at $3400 strike would act as key resistance. MCX Gold Aug is expected to rise towards Rs.98,400 level as long as it stays above Rs.96,400 level

• MCX Silver July is expected to rise towards Rs.102,500 level, as long as it holds above Rs.99,000 level.

Base Metal Outlook

• Copper prices are expected to hold its gains and trade higher amid fears that the metal also be subject to US tariffs. Further, depleting LME inventory levels and rising demand of refined Copper cathodes indicates steady demand of the metal. Moreover, recent disappointing manufacturing data from China would force the Chinese officials to go after fresh round of stimulus to boost the economy. Additionally, threat to global copper supply also help prices to stay firm.

• MCX Copper June is expected to hold the support at Rs.860 level and move higher towards Rs.878 level. A break above Rs.878 level prices may rally towards Rs.885 level

• MCX Aluminum June is expected to hold the support at Rs.236 level and move higher towards Rs.242 level. MCX Zinc June is likely to move north towards Rs.257 level as long as it stays above Rs.252 level.

Energy Outlook

• Crude oil is likely to hold its gains and move towards $64 mark amid supply side issues and renewed concerns on Iranian oil exports. Further, drawdown in API crude oil inventories for the 2 nd week in a row also suggest demand improvement in US, ahead of summer driving season. Additionally, geopolitical tension between Russia and Ukraine would hurt global supplies. Meanwhile, higher supplies from OPEC+ in July and recent batch of weaker economic numbers from China would restrict any major upside in oil prices.

• On the data front a strong call base at $65 would act as major hurdle for now. As long as it resists prices are likely to consolidate in the band of $60 and $65 per barrel. MCX Crude oil June is likely to hold the support at Rs.5280 level and move higher towards Rs.5480 level.

• MCX Natural gas June is expected to rise towards Rs.327 level as long as it stays above Rs.310 level. Only a move above Rs.327 it would turn bullish and rise towards Rs.340.

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