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Metal’s Outlook

Bullion Outlook

* Spot Gold is expected to find support near $3350 and move towards $3400 amid safe haven buying. Escalating geopolitical tension between Israel and Iran would support the bullion prices. Meanwhile, investors will eye for any developments on US’s involvement in Iran and Israel war. On the other hand hawkish stance from the US Fed chair amid uncertainty overtrade policies and inflation concerns could restrict the upside in prices.

* Spot gold is expected to remain volatile and move in the band of $3350(20-DEMA) and $3400. Only a move below $3350 it would turn weaker. MCX Gold Aug is expected to move in the band of Rs.98,500 and Rs.99,900 level. A move below Rs.98,500 would bring correction in price towards Rs.97,800.

* MCX Silver July is expected to take a pause in its rally and move lower towards Rs.106,100 level as long as it trades under Rs.108,400 level.

Base Metal Outlook

* Copper prices are likely to face resistance and move lower amid strong dollar and risk off sentiments. Weaker set of economic numbers from US and China would hurt its demand prospects and sluggish growth in home prices also likely to check the upside. Meanwhile, depleting inventory levels and supply concerns would provide support to prices. Widening LME copper backwardation clearly indicates tightness on the market. At the same time China has left its short-term rates unchanged after a deduction of 10 bps in last month.

* MCX Copper June is expected to move lower towards Rs.870, as long as it trades under ?885 level.

* MCX Aluminum June is expected to find support near Rs.242 and rebound towards Rs.247 level. MCX Zinc June is likely to face resistance near Rs.255 level and move in the range of Rs.250 and Rs.255 level. A move above Rs.255, would open the doors towards Rs.257.

Energy Outlook

* Crude oil is likely to remain volatile and trade with positive bias amid escalating geopolitical tenson in the Middle East. Renewed attacks has increased the concerns over tanker traffic through the Strait of Hormuz, which could drive prices higher. Meanwhile, growing speculation over could join Israel’s attack on Iran would also hurt global oil supplies.

* On the data front , call bas has shifted towards 75 strike, while strong put base seen at $65 strike. Furthermore, addition of fresh OI at $75 call strike indicates price to face hurdle around $75 per barrel mark. MCX Crude oil July is likely to remain in the band of Rs.6050 and Rs.6550 level. Only above Rs.6550, it would rise towards Rs.6700.

* MCX Natural gas July is expected to move higher towards Rs.370 as long as it holds above Rs.348 mark. Forecast of hotter weather in US would increase cooling demand.

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