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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to face stiff resistance near $2450 level and slip back towards psychological level of $2400 amid firm dollar and rise in US treasury yields. Dollar and yields are moving north as Fed speakers overnight warned that they are still not confident that inflation will come down substantially and may have to keep borrowing cost higher. Meanwhile, demand for safe haven may increase on news that Iran’s President Ebrahim Raisi was killed in helicopter crash, at a time of turmoil in Middle East. Spot gold is likely to slip towards $2400 level as long as it stays below $2450 level. A sustain break below $2400 prices may move towards $2380 level (10-Day EMA)

• MCX Gold June prices is likely to slip back towards 73,800 level as long as it stays below 74,500 level. A break below 73,800 prices may move further south towards 73,300 level

• MCX Silver July is expected to rise further towards 96,000 level as long as it stays above 94,000 level.

Base Metal Outlook

• Copper prices are expected to trade with the positive bias as China’s supportive measures to revive property sector and better than expected economic data from China will continue to add momentum buying. Additionally, prices may rally on rise in risk appetite in the global market and expectations of tighter supplies. Meanwhile, investors will remain vigilant ahead of statements from Fed officials to get more clarity on interest rate trajectory

• MCX Copper is expected to move north towards 945 level as long as it stays above 925 level. On contrary, only break below 925 prices may slip further towards 915 level

• Aluminum is expected to rise towards 245 level as long as it remains above 241 level

Energy Outlook

• NYMEX Crude oil is expected to slip towards $78 levels on strong dollar and on concerns that US Fed would keep its borrowing cost higher for longer hurting economic growth and demand for oil. Meanwhile, investors will keep an eye on political uncertainty in 2 major oil producing countries after Iran’s president died in helicopter crash and Saudi Arabia’s crown prince deferred a trip to Japan because of the health of King. Moreover, OPEC+ are scheduled to meet on June 1 st to discuss whether to extend voluntary output cuts.

• MCX Crude oil June is likely to slip towards 6450 levels as long as it trades below 6700 levels.

• MCX Natural gas is expected to rise further towards 235 levels as long as it stays above 220 levels as outlook for hot temperatures in the southern US will boost natural gas demand from electricity providers.

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