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Bullion Outlook

Metal’s Outlook

* Intl Gold is expected to rise back towards $2390 level on expectation of correction in dollar and US treasury yields. Yields and Dollar may move south on expectations that US core-PCE prices index, Fed’s preferred inflation gauge is likely to show ease in price pressure in June, boosting hopes for rate cut in September. Moreover, demand for safe haven may increase on escalating tension in Middle East. Meanwhile, higher OI concertation at call strike 2400 will act as a stiff resistance for the prices. Gold is likely to rise back towards $2390 level as long as it stays above $2335 level

* MCX Gold is expected to hold the support near 67,100 level and rise back towards 68,000 level. A break above 68,000 level it may rise further towards 68,500 level

* MCX Silver September is expected to rise back towards 82,500 level as long as it stays above 80,500 level. A break above 82,500 level prices may rise further towards 83,500

Base Metal Outlook

* Copper prices are expected to trade with positive bias on expectation of correction in dollar. Further, China's central bank surprised markets for a second time this week by conducting an unscheduled lending operation at steeply lower rates, signaling PBOC trying to provide monetary stimulus to revive economic growth. Additionally, China’s yangshan premium, an indicator of import demand, remained near three-month high of $25 per ton yesterday, indicating recovery in demand.

* MCX Copper Aug is expected to rise back towards 810 level as long as it stays above 784 level. A break above 810 prices may rally further towards 814 level

* Aluminum is expected move north towards 214 level as long as it stays above 209.50 level. A break above 214 level prices may rise further towards 217 level

Energy Outlook

* NYMEX Crude oil is expected to rise back towards $79.50 level on expectation of correction in dollar. Further, US economy grew faster than expected in the second quarter while inflation eased, boosting expectations that US Fed would lower interest rates in September. Lower borrowing cost tend to boost economic growth, which can spur oil demand. Additionally, prices may rally on supply concerns as in Canada, hundreds of wildfires are burning in the western provinces of British Columbia and Alberta, including in the area of oil sands hub Fort McMurray. The hub produces 3.3 million barrels per day of crude. NYMEX Crude oil is likely to rise back towards $79.50 level as long as it trades above $76.60 level (200-Day EMA)

* MCX Crude oil is likely to move north towards 6750 level as long as it stays above 200-Day EMA at 6350 level

* MCX Natural gas is expected to fall further as the 22Bcf build in inventories for last week landed above most expectations. MCX Natural gas Aug is likely to dip towards 165 level as long as it stays below 183 level

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