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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to hold the support near $2320 level and rise back towards $2365 level amid weakness in dollar and decline in US treasury yields. Dollar and Yields are moving south as recent batch of economic data from US showed economy is losing momentum, signaling US Fed has scope to cut interest rates this year. Moreover, a measure of inflation during the first quarter was also revised down to 3.3% from 3.4%. Additionally, investors will remain cautious ahead of PCE index, the Fed's preferred inflation gauge to get fresh cues on how the central bank might proceed with interest rate cuts this year.

* MCX Gold Aug prices is likely to rise further towards 72,500 level as long as it stays above 71,600 level. A break above 72,500 level prices may rise further towards 73,000 level.

* MCX Silver July is expected to slip back towards 92,700 level (10-Day EMA) as long as it stays below 94,900 level

Base Metal Outlook

* Copper prices are expected to trade with the negative bias amid risk aversion in the global markets and as world's largest economy grew more slowly than previously estimated in the first quarter. Further, prices may slip as premium in China to import copper into the country continued to remain below zero, signifying weak physical demand. Moreover, rise in copper stockpiles along with decline in cancel warrants at LME registered warehouses would weigh on copper prices. Further, contraction in the manufacturing activity in China would also weigh on the metal.

* MCX Copper is expected to slip towards 862 level as long as it stays below 886 level (20-Day EMA). On contrary, A break above 886 level prices may move further north towards 895 level (10-Day EMA)

* Aluminum is expected to move south towards 240 level (20-Day EMA) as long as it stays below 247 level. 

Energy Outlook

* NYMEX Crude oil is expected to slip further towards $76 level amid signs of slower economic growth in world’s largest economy and surprise build in US gasoline and distillate stocks. Meanwhile, investors will remain cautious ahead of OPEC+ meeting where organization is likely to extend their voluntary output cuts past an end-June deadline. Additionally, markets are now looking into PCE index release, the Fed's preferred inflation gauge. The headline number is seen rising 0.3% in April, unchanged from the previous month. NYMEX Crude oil is likely to slip towards $76 as long as it trades below $78.50 level (10-Day EMA)

* MCX Crude oil June is likely to slip towards 6350 levels as long as it stays below 6600 level (20-Day EMA)

* MCX Natural gas June is expected to slip towards 211 level as long as it stays below 222 level 

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