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Metal’s Outlook

Bullion Outlook

• Spot Gold is likely to hold the support near $4400 level and rise towards $4500 level on expectation of further correction in dollar and softening of US treasury yields. Further, prices may rise as hopes of peace deal between US and Iran persisted, fading inflation worries and lowering expectation for interest rate hikes. US President Donald Trump said peace negotiations were nearing their final phase; however, Iran claimed that no meaningful progress in talks had occurred yet. Meanwhile, investors will remain cautious ahead of job data from US as to see whether economy remains resilient enough for Federal Reserve to hold rates steady or whether softening of labor market condition could revive the case for monetary easing.

• MCX Gold Aug is expected to rise further towards Rs 161,000-Rs 162,000 level as long as it stays above Rs157,400 level

• MCX Silver July is expected to slip towards Rs260,000-Rs257,000 level as long as it stays below Rs268,000 level.

Base Metal Outlook

• Copper prices are expected to trade with negative bias on weak global market sentiments and on concerns that Middle East conflict would hamper demand growth. Additionally, investors will remain cautious ahead of slew of economic data from major economies to gauge economic health and demand outlook. Meanwhile, sharp fall in the prices may be cushioned on renewed concerns about US import tariffs and declining inventories along with rise in cancel warrants at LME registered warehouses.

• MCX Copper June is expected to slip towards Rs1355 level as long as it stays below Rs1380 level. A break below Rs1355 level prices may be pushed towards Rs1350-Rs1345 level

• MCX Aluminum June is expected to slip towards Rs387-Rs385 level as long as its stays below Rs394 level. MCX Zinc June is likely to face stiff resistance near Rs375 level and slip towards Rs368-Rs366 level.

Energy Outlook

• NYMEX Crude oil is likely to trade with negative bias on growing optimism over peace deal between US and Iran. Investors hope that end of conflict in Middle East would reopen Strait of Hormuz. Additionally, US President Donald Trump suggested that there could be progress in negotiations with Iran as soon as this weekend. Meanwhile, sharp fall in prices may be cushioned as investors fear that exports from US may decline as US driving season may lift domestic demand, tightening global supply. Moreover, Hezbollah rejected a US-mediated ceasefire proposal between Israel and Lebanon and Israel said it would not withdraw troops from the country, undermining U.S. President efforts to halt fighting

• MCX Crude oil June is likely to face stiff resistance near Rs9100 level and slip towards Rs8600-Rs8500 level

• MCX Natural gas June is expected to rise towards Rs330-Rs335 level as long as it stays above Rs305 level.

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