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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to rise towards $1930 levels as long as it sustains above $1909 levels (200-Day EMA) amid soft dollar and expectation of correction in US treasury yields. Further, investors will remain vigilant ahead of slew of economic data from US in this week to get cues on interest rate outlook. More focus will be on inflation data due Wednesday especially with oil price rising. As per CME Fed Watch tool investors now see a 93% chance of Fed holding its rate steady in September meeting

• MCX Gold prices is likely to move north towards 59,200 level as long as it trades above the support level of 58,800 levels

• MCX Silver is expected to slip towards 71,000 level as long as it sustains below 72,100 level

Base Metal Outlook

• Copper prices are expected to trade with negative bias amid pessimistic global market sentiments and rising copper inventories at LME and SHFE registered warehouses. Further, disappointing economic data from major countries has fueled the concern over slowdown in global economic growth. Market participants are concerned about the demand outlook in China, which has shown sluggish post-pandemic recovery and stimulus packages have fallen short of expectations

• MCX Copper may slip further towards 718 levels as long as it trades below 726 levels

• MCX aluminium is expected to face hurdle near 200.50 level and slip back towards 199.00 level

Energy Outlook

• NYMEX Crude oil is expected to slip towards $85.50 as long as it trades below $87.50 level amid risk aversion in the global markets and as economic concerns in China and other major countries would weigh on fuel demand outlook. However, sharp downside may be cushioned amid retreat in US dollar and on fears over tightening supplies. Additionally, investors will remain cautious ahead of release of IEA and OPEC monthly reports scheduled this week

• MCX Crude oil is likely to slip back towards 7145 level as long as its sustains below 7320 levels

• MCX Natural gas is expected to move downwards towards 209 level as long as it stays below 222 level on forecast for cooler than normal temperature in US

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