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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to rise further towards $2390 level amid soft dollar and decline in US treasury yields. Dollar and Yields are moving south as softening economic data boosted expectations that US Federal Reserve will make two 25bps rate cut this year. After weak Jolts job opening and private payrolls data market anticipates that non-farm payrolls data would come below expectations. Moreover, ECB is likely to cut interest rate by 25bps in today’s meeting. Spot gold prices may rise further towards $2390 level as long as it stays above $2350 level (20-day EMA)

* MCX Gold Aug prices is likely to rise further towards 72,900 level as long as it stays above 72,100 level (20-Day EMA). A break above 72,900 level prices may rise further towards 73,300 level.

* MCX Silver July is expected to rise further towards 91,700 level (10-Day EMA) as long as it stays above 89,000 level. A break above 91,700 level prices may rise further towards 92,800 level

Base Metal Outlook

* Copper prices are expected to trade with the positive bias amid weakness in dollar and rise in risk appetite in the global markets. Further, prices may rally on expectations that major central banks across globe would start cutting interest rates. Lower borrowing cost would support economic activity and increase the demand for industrial metal. Bank of Canada cut interest rates by 25 basis points to 4.75%, its first cut in 4 years, ECB is likely to go for first rate cut today while BOE is likely to follow BOC and ECB. Meanwhile, rising inventories at LME and SHFE registered warehouses would cap sharp upside in prices.

* MCX Copper is expected to rise further towards 882 level (10-Day EMA) as long as it stays above 857 level

*  Aluminum is expected to move north towards 242 level (10-Day EMA) as long as it stays above 237 level. A break above 242 level prices may rally till 245 level

Energy Outlook

* NYMEX Crude oil is expected to rebound back to $76 level amid weak dollar and rise in risk appetite in the global markets. Further, prices may move higher on expectations that US Federal Reserve will cut its key interest rate in September and once more in this year. Lower borrowing cost would support economic growth and boost oil demand. Meanwhile, sharp upside may be capped on demand concern after data showed builds in US crude and fuel stocks. NYMEX Crude oil is likely to rise further towards $76 (10-Day EMA) as long as it trades above $73 level

* MCX Crude oil June is likely to rise further towards 6350 level as long as it stays above 6080 level

* MCX Natural gas June is expected to rise further towards 237 level as long as its stays above 220 level (10-Day EMA) amid US weather forecasts turned warmer

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