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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to rise further towards $2400 level amid weakness in dollar and fall in US treasury yields. Dollar and Yields are moving south as recent batch of economic data showed moderating inflation along with ebbing labor market tightness. After weak private payrolls data and initial claims market anticipates that non-farm payrolls data would come below expectations. Markets are pricing in two 25 basis points Fed cuts this year, with the first most likely in September. Spot gold prices may rise further towards $2400 level as long as it stays above $2350 level (20-day EMA)

* MCX Gold Aug prices is likely to rise further towards 73,700 level as long as it stays above 72,700 level. A break above 73,700 level prices may rise further towards 74,000 level.

*  MCX Silver July is expected to rise further towards 95,000 level as long as it stays above 92,000 level (10-Day EMA). A break above 95,000 level prices may rise further towards 96,000 level

Base Metal Outlook

* Copper prices are expected to trade with the positive bias amid weak dollar and optimistic global market sentiments. Further, prices may rally on optimism that central bank rate cuts will help economic growth and increase the demand for industrial metal. After Bank of Canada cut interest rates by 25 basis points to 4.75%, European Central Bank cut interest rates for the first time in nearly five years by 25bps to 4.25%. Investors hopes that Federal Reserve to follow as soon as September. Meanwhile, rising inventories at LME and SHFE registered warehouses and sluggish demand from China would cap sharp upside in prices.

* MCX Copper is expected to rise further towards 900 level as long as it stays above 875 level

* Aluminum is expected to move north towards 245 level as long as it stays above 240 level (20-Day EMA).

Energy Outlook

* NYMEX Crude oil is expected to rise further towards $77 level amid soft dollar following weaker than expected job data and rise in risk appetite in the global markets. Further, prices may move higher on expectations that US Federal Reserve will follow ECB and BOC and cut its key interest rate in September and then once more in this year. Moreover, OPEC+ ministers comforted investors by signaling that latest oil output agreement could change depending on the market. NYMEX Crude oil is likely to rise further towards $77 (20-Day EMA) as long as it trades above $74 level

* MCX Crude oil June is likely to rise further towards 6450 level (20-Day EMA) as long as it stays above 6200 level

* MCX Natural gas June is expected to rise further towards 240 level as long as its stays above 228 level amid US weather forecasts turned warmer

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