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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to face resistance near $2370 level and slip back towards $2340 level amid strong dollar and surge in US treasury yields. Dollar and Yields are gaining as economic data from US are better than expected so far, reinforcing expectations that US Fed would delay its first rate cut and reduce the number of cuts as well. Meanwhile, demand for safe haven may increase on rising tension in Middle East. Spot gold is likely to face stiff resistance near $2370 level and slip back towards $2340 level. A break below $2340 level prices may slip towards $2320

• MCX Gold Aug prices is likely to slip back towards 71,800 level as long as it stays below 72,600 level (10-Day EMA). A break below 71,800 level prices may slide further towards 71,500 level.

• MCX Silver July is expected to follow gold and slip back towards 93,000 level as long as it stays below 96,000 level

Base Metal Outlook

• Copper prices are expected to trade with the negative bias amid strong dollar and pessimistic global market sentiments. Further, prices may slip as premium in China to import copper into the country remained below zero, indicating weak physical demand. Additionally, stockpiles of copper in warehouses tracked by SHFE continued to be elevated. Moreover, investors will keep an close eye on inflation data from US to get cues on rate trajectory and surveys of purchasing managers in China's manufacturing sector to assess demand prospects

• MCX Copper is expected to slip back towards 898 level (10-Day EMA) as long as it stays below 915 level. A break below 898 level prices may move further south towards 885 level (20-Day EMA)

• Aluminum is expected to move north towards 249 level as long as it stays above 245 level. On contrary, break below 245 level prices may slip towards 241 level (10-Day EMA)

Energy Outlook

• NYMEX Crude oil is expected to rise towards $81.0 level on expectations that OPEC+ will extend its voluntary output cut of 2.2mbpd in second half of the year when it meets on June 2 nd . Additionally, fuel consumption would begin rising with the start of the peak summer demand season. Moreover, investors fear that tension in Middle East may escalate as Israeli tanks advanced to the heart of the Rafah section, adding risk premium on oil prices. Further, market will keep an eye on crude oil inventory data from American Petroleum Institute

• MCX Crude oil June is likely to rise towards 6750 levels as long as it trades above 6550 level

• MCX Natural gas June is expected to rise further towards 242 level as long as it stays above 228 level. A break above 242 level will open doors for 248 level

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