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Metal’s Outlook

Bullion Outlook

* Spot gold is expected to hold its gains and move towards $2410 on expectation that Federal Reserve might go for two rate cuts in this year. Recent batch of mixed economic numbers from US and decline in inflation numbers would force the Fed to go for rate cuts in September. Further, forecast of rise in weekly jobless claims numbers and weaker economic numbers in US would support the bullions to trade higher. Moreover, geopolitical risk premiums would also provide support to the bullions.

* MCX Gold June is expected to rise towards 73600, as long as it holds above the 72800 mark. Above 73600 it would open the doors towards 74000.

* MCX Silver July is expected to rose towards 88,000. A move above 88,000 would open the doors towards 90,000. On the downside immediate support hold near 85,800.

Base Metal Outlook

* Copper prices are expected to hold its gains amid tight supply and increase in demand from the end users after the US tariffs on Chinese imports. Additionally, low availability of material and softness in the dollar would support the red metal to trade higher. Now the focus will shift towards the economic numbers from China, which is expected to show improvement in the industrial activity in the region and support the bullish outlook in the base metals.

* MCX Copper May is likely to hold the support near 884 and move towards 902. Only a move above 902 it would open the doors towards 910

* Aluminum May future is expected to rise towards 241, as long as it hold the key support at 234.

Energy Outlook

* NYMEX Crude oil is expected to move in the band of $77 and $80 as softness in the dollar and improved risk appetite limit its downside. Further, drawdown in the crude oil inventories since last couple of weeks would also support its gains. Meanwhile, prices would face resistance near the $80 mark due to increase in output by few OPEC members and disagreement on extension of production cut beyond 2 nd quarter. Moreover, forecast of lower demand in the year 2024 by IEA of around 140,000 barrels per day to 1.1 M bpd would check its upside.

* MCX Crude oil June future is expected to face the hurdle near 6600 and move lower towards 6450. Only a move above 6600, it would rise towards 6700.

* Natural Gas prices are expected to hold its gains on the prospects of better demand from electricity providers in US. MCX May is likely to hold the support at 193 and move higher towards 210.

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