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Bullion Outlook

* Spot Gold is expected to correct towards $3280 level on expectation of recovery in dollar and ease in demand for safe haven amid de-escalation of trade conflict between U.S. and EU. U.S. President Donald Trump set a July 9 deadline for a trade deal with the European Union. Moreover, investors fear that inflation would remain sticky even if Trump administration negotiates trade deal with its major trading partners as their will be some tariffs, which would provide less room for Fed to cut rates. Meanwhile, sharp fall would be cushioned on concerns over swelling fiscal deficit

* Spot gold is likely to slip back towards $3280 level as long as it stays below $3370 level. MCX Gold June is expected to slip back towards Rs.95,400 level as long as it stays below Rs.96,700 level

* MCX Silver July is expected to rise back towards Rs.99,000 level as long as it trades above Rs.96,900 level. A break above Rs.99,000 level prices may rally further towards Rs.100,000 level

Base Metal Outlook

* Copper prices are expected to trade with positive amid rise in risk appetite in the global markets following U.S. President Donald Trump postponing his recently proposed 50% tariff on EU products to July. Additionally, persistent decline in LME inventories would be supportive for the prices. Meanwhile, sharp upside would be capped on worries over the United States worsening fiscal health.

* MCX Copper May is expected to rise towards Rs.866 level as long as it stays above Rs.852 level. A break above ?866 level prices may rally further towards Rs.870 level

* MCX Aluminum May is expected to rise back towards Rs.239 level as long as it stays above Rs.234 level. MCX Zinc May is likely to move north towards Rs.261 level as long as it stays above Rs.255 level.

Energy Outlook

* Crude oil is likely to trade with positive bias amid optimistic global market sentiments. Further, U.S. President Donald Trump extended a deadline for trade talks with EU, easing concerns over slowdown in global economic growth and fuel demand. Moreover, oil prices may rally on escalating geopolitical tension in Middle East and Eastern Europe. Israel’s military said that it plans to capture 75% of the Gaza strip within the next 2-months, raising concerns about a broader regional conflict. Russian forces launched a barrage of drones and missiles at Ukrainian cities overnight, in the largest aerial attack of the war so far. Meanwhile, sharp upside may be capped on signs of some limited progress in nuclear talks between U.S and Iran

* MCX Crude oil June is likely to rise back towards Rs.5400 level as long as it stays above Rs.5150 level.

* MCX Natural gas June is expected to dip towards Rs.300 level as long as it stays below Rs.325 level.

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