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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to hold the support near $2170 levels and rise towards $2200 levels amid weakness in US treasury yields. US yields may move further south as US Federal Reserve in its recent meeting kept its monetary policy unchanged as widely expected and indicated that it would stick to its plan of interest rate cuts this year. It even pushed back market expectations of only 2 rate cuts this year. As per CME FedWatch tool traders are now pricing in a 70% probability that Fed will begin cutting rates in June, up from 67.4% as day ago. Meanwhile, sharp upside may be capped on rise in risk appetite in the global markets and release of strong economic data • MCX Gold April prices is likely to rise towards 66,350 level as long as it stays above 65,650 levels • MCX Silver May is expected is expected to follow gold and rise back towards 76,000 level as long as it sustains above 74,600 level.

Base Metal Outlook

• Copper prices are expected to trade with the positive bias buoyed by optimistic global market sentiments and persistent decline in copper stocks at LME registered warehouses. Market sentiments improved after US Federal Reserve hinted that it was on course for 3 interest rate cuts in 2024, SNB dialed back tighter monetary policy and BOE Governor Andrew Bailey said economy is moving towards the point where central bank can start cutting interest rates. Lowering borrowing cost brightened demand outlook for industrial metals. Meanwhile, investors will remain cautious ahead of slew of economic data from major economies • MCX Copper is expected to move north towards 765 level as long as it stays above 750 level. • Aluminum is expected to rise back towards 206 level as long as it stays above 204 level.

Energy Outlook

• NYMEX Crude oil is expected to slip further towards $79.50 level on firm dollar and hopes for ceasefire in Gaza. US is set to table UN draft resolution demanding an immediate ceasefire in Gaza. Meanwhile, sharp downside may be cushioned on optimistic global market sentiments and Ukrainian attacks on Russian refineries. Additionally, major central banks like US Fed and BOE signaled rate cuts this year and SNB became first major central bank to dial back tighter monetary policy, lower rates could boost economic growth and increase demand for oil • MCX Crude oil April is likely to dip towards 6600 levels as long as it trades below 6850 levels. • MCX Natural gas April is expected to slid further towards 147 levels as long as it stays below 158 levels as weekly EIA inventory report showed that US natural gas inventories are abundant.

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