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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to rise further towards $2375 level amid weakness in dollar and decline in US treasury yields. Dollar and Yields are moving south as recent data showed US economy is slowing down bit by bit, raising hopes that US Federal Reserve may start cutting rates by September. Data showed manufacturing weakened as new goods orders dropped by the most in nearly 2 years, while a measure of input inflation fell back from the highest since mid-2022. Moreover, US Jolts job opening is likely to show that labor market conditions are gradually easing. Spot gold prices may rise further towards $2375 level as long as it stays above $2325 level

* MCX Gold Aug prices is likely to rise further towards 72,700 level as long as it stays above 71,700 level. A break above 72,700 level prices may rise further towards 73,200 level.

* MCX Silver July is expected to follow gold and rise further towards 93,500 level as long as it stays above 91,300 level

Base Metal Outlook

* Copper prices are expected to trade with the positive bias amid weakness in dollar and optimistic global markets. Further, prices may move up as upbeat economic data from China may continue to support. Additionally, prices may rally on supply risk as Taseko Mine suspended operations at its Gibraltar mine after workers called a strike over the weekend. Moreover, weaker than expected economic data from US, cemented expectations that Federal Reserve would cut interest rates later this year

* MCX Copper is expected to rise further towards 889 level (10-Day EMA) as long as it stays above 870 level. A break above 889 level prices may rally further towards 896 level

* Aluminum is expected to move north towards 242.5 level (10-Day EMA) as long as it stays above 238 level. A break above 242.50 level prices may rally further till 245 level

Energy Outlook

* NYMEX Crude oil is expected to extend its previous session losses and slip further towards $73 on worries over supply rising later in 2024 and on signs of weakening demand growth. OPEC+ agreed to extend most of their oil output cuts into 2025 but left room for voluntary cuts from eight members to be gradually unwound from October onward. Meanwhile, US efforts to replenish the country's Strategic Petroleum Reserve could provide some support to oil prices. US is buying another 3 million barrels for the SPR at an average price of $77.69 a barrel. NYMEX Crude oil is likely to slip further towards $73 as long as it trades below $75 level

* MCX Crude oil June is likely to slip further towards 6050 level as long as it stays below 6300 level

* MCX Natural gas June is expected to rise towards 233 level as long as it stays above 218 level (10-Day EMA). A break above 233 level prices may rally further towards 237 levels

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