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Bullion Outlook

Metal’s Outlook

* Spot gold is expected to hold the support near $2310 and move towards $2350 level amid softness in the dollar. Further, mixed US economic numbers would increase the rate cut probability in September and support the bullions to regain its strength. Additionally, safe haven bids on the back of geopolitical and economic uncertainties might help the precious metal to trim its losses. Meanwhile, higher OI in OTM calls indicates prices to face resistance at higher levels.

* MCX Gold Aug has formed a bearish engulfing pattern on the daily charts, which might restrict the upside in the precious metal. Immediate resistance for price exists near 72,350. Fort the day, we expect prices to recover some its losses and rebound towards the initial hurdle near 72,350. Only close below 71,500, it would weaken towards 71,200.

* MCX Silver July is expected to move lower towards 88,200 as long as it trades under 90,200.

Base Metal Outlook

* Copper prices are expected to remain under pressure amid demand concerns from China and build-up of inventory levels in LME. Further, expectation of moderation in US house prices and weakness in the manufacturing index would hurt the demand outlook of the base metals. Meanwhile, focus will remain on the key comments from the Fed officials and latest economic numbers to get more clarity in its direction.

* MCX Copper July is expected to face the hurdle near 10 day EMA at 859 and move lower towards its recent bottom at 844. Only a move below 844, it would open the downside in the metal towards 836. The bearish cross over of 10 and 20 day EMA in daily charts indicates weakness in the price trend.

* Aluminum is expected to trade weak and move towards 227, as long as it remains under 234 mark.

Energy Outlook

* NYMEX Crude oil is expected to hold its gains and move towards the $84 mark amid supply concerns and improved demand outlook. Escalating Mideast tension and fresh attacks from Ukraine on Russian oil refinery has caused supply concerns. On the other hand, disappointing economic numbers from China would restrict its upside. Further, 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 6690, and move higher towards 6900. Above 6900 it would rise towards 7000.

* MCX Natural gas July is likely to regain its strength amid increasing demand from the electricity providers. Forecast of above normal temperature in US would support the gas price. MCX Natural gas is expected to rise towards 248, as long as it holds above 234.

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