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Bullion Outlook

* Spot Gold is likely to slip towards $4500 level amid firm dollar and rise in US treasury yields. Further, prices may slip as stalled peace talk between US and Iran and ongoing blockage in Strait of Hormuz, refueled concerns over rising inflation and monetary tightening across major economies. Investors are pricing possibilities that central banks may keep rate elevated for longer or may even increase it. Moreover, Iran and US, both are blocking the waterway to gain leverage during extended ceasefire, disrupting oil supply and keeping prices at elevated level. Additionally, investors will keep an eye on US Federal Reserve monetary policy meeting outcome. More focus will be on statement to get cues on interest rate trajectory.

* MCX Gold June is expected to face resistance near Rs.152,000 level and slip towards Rs.148,000-Rs.147,000 level.

* MCX Silver July is expected to slip towards Rs.238,000-Rs.236,000 level as long as it stays below Rs.247,000 level

Base Metal Outlook

* Copper prices are expected to trade with negative bias amid firm dollar and pessimistic global market sentiments. Market sentiments are hurt as US President Donald Trump is unhappy with Iran’s new proposal to end the war, dampening hopes for resolution to the conflict. Additionally, copper may face headwinds from inflation concerns as it may prompt tighter monetary policy in major economies, alongside growth risk that may hurt demand for industrial metal. Furthermore, expectation of disappointing economic data from US would weigh on copper prices

* MCX Copper May is expected to slip towards Rs.1260 level as long as it stays below Rs.1290 level. A break below Rs.1260 level prices may be pushed towards Rs.1255-Rs.1250 level

* MCX Aluminum May is expected to slip towards Rs.360-Rs.357 level as long as its stays below Rs.372 level. MCX Zinc May is likely to face stiff resistance near Rs.345 level and slip towards Rs.336 level

Energy Outlook

* NYMEX Crude oil is likely to trade with positive bias on lingering concerns over supply constraint due to blockade of Strait of Hormuz. Further, hopes of diplomatic breakthrough is fading as efforts to revive talks stalled and both nations shows little sign of softening. US officials said President Donald Trump is not happy with the latest proposal from Iran to end the war, dashing hopes for quick end to conflict. Additionally, prices may rally as shipping activity through the Strait of Hormuz, remained limited, significant disruption in region. Moreover, Ukrainian drone attack led to major blaze at Russia’s Tuapse refinery, which has annual production capacity of 240,000 bpd. Meanwhile, UAE announced that it may leave OPEC and OPEC+ by 1 st may weakening groups control over global oil supplies and allowing UAE to increase output once exports resumes from Gulf. MCX Crude oil May is likely to rise towards Rs.9700-Rs.9850 level as long as it stays above Rs.9100 level.

* MCX Natural gas May is expected to dip towards Rs.250-Rs.246 level as long as it stays below Rs.265 level.

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