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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to hold the support near $2185 levels and rise towards $2230 levels surging to record highs amid weakness in US treasury yields and softening of dollar. US yields and Dollar are moving south as US Federal Reserve left its interest rates unchanged as widely expected and sticked to 75bps rate cut forecast this year. Further, Fed Chair Jerome Powell said recent high inflation readings had not changed the underlying "story" of slowly easing price pressures in the US. As per CME FedWatch tool traders are now pricing in a 73% probability that Fed will begin cutting rates in June, up from 55.6% as day ago. Moreover, PMI data is likely to show that activity in manufacturing sector continued to contract across major economies 

* MCX Gold April prices is likely to rise further towards 66,500 level as long as it stays above 65,650 levels 

* MCX Silver May is expected is expected to follow gold and rise further towards 76,500 level as long as it sustains above 75,000 level.

Base Metal Outlook

* Copper prices are expected to trade with the positive bias buoyed by weakness in dollar and optimistic global market sentiments. Further, Federal Reserve kept interest rates in the 5.25% to 5.50% range and indicated that they still expect to reduce them by three-quarters of a percentage point by the end of 2024. Investors hope that other major central banks will follow Fed and indicate cutting of interest rates in coming months, supportive for economic growth and boost demand for industrial metal. Meanwhile, sharp upside may be capped as investors are still worried about China's troubled and debt-laden property sector 

* MCX Copper is expected to move north towards 765 level as long as it stays above 750 level. A move above 765 would open the doors for 770 levels.

* Aluminum is expected to rise further towards 205.50 level as long as it stays above 203.50 level.

Energy Outlook

* NYMEX Crude oil is expected to rise back towards $83 levels amid rise in risk appetite in the global markets, signs of stronger demand and weakness in dollar. Furthermore, prices may rally on worries over tighter global supplies, after some members of the OPEC signaled they will reduce production in the coming months and Ukrainian strikes on key Russian fuel refineries shut down production capacity. Moreover, data from API and EIA showed US crude oil stocks fell unexpectedly and gasoline inventories continued to plunge. Moreover, US Federal Reserve said it still anticipates cutting interest rates three times this year 

* MCX Crude oil April is likely to rise towards 6900 levels as long as it trades above 6730 levels. 

* MCX Natural gas April is expected to slid further towards 147 levels as long as it stays below 158 levels on forecasts for less demand over the next two weeks than previously expected.

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