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Bullion Outlook

Metal’s Outlook

* Spot gold is expected to remain in a tight range with a weaker bias amid strong dollar and hawkish comments from the Fed members. Further, improved housing data from US could also support the dollar to hold its gains. Meanwhile, safe haven bids on the back of geopolitical and economic uncertainties might help the precious metal to trim its losses. Meanwhile, addition of OI in OTM calls indicates prices to face resistance near $2350.

* MCX Gold Aug is expected to dip towards the key support near 71200 as it has breached the intermediate consolidation range of 71500-72000. Formation of bearish engulfing on the daily charts would limit its upside. Only close below 71,200, it would weaken towards 71,000.

* MCX Silver July is expected to move lower towards 86,000, as long as it trades under 88,200.

Base Metal Outlook

* Copper prices are expected to remain under pressure amid demand concerns from China. Sluggish growth in the housing sector despite recent measures from the Chinese official would weigh on the metals. Further, rise in inventory levels in LME and other major exchanges would limit its upside. Meanwhile, hopes of fresh round of stimulus from China could limit its downside.

* MCX Copper July is expected to face the hurdle near 848 and move lower towards 830. Bearish cross over of 10 and 20 day EMA in the daily charts along with bearishness in the oscillator (RSI below 50) would weaken the metal towards 830.

* Aluminum is expected to trade weak and move towards 227, as long as it remains under 231 mark.

Energy Outlook

* NYMEX Crude oil is expected to hold the support near the $80 mark and move towards the $82 mark amid supply concerns and forecast of decline in oil and gasoline inventory. Further, escalating Mideast tension and decline in oil exports from Russian due to recent attacks on the oil refinery would support the oil to hold firms. On the other hand, disappointing economic numbers from China and stronger dollar due to hawkish comments from the Fed members would restrict its upside. Moreover, higher OI concentration at OTM call strikes indicates price may face stiff resistance near $84. on the downside $80 holds as key support.

* MCX Crude oil July is likely to hold the 10 day EMA support near 6680, and move higher towards 6900. Above 6900. it would rise towards 7000.

* MCX Natural gas July is likely hold the support near 234 and rise back towards 250.

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