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Bullion Outlook

• Gold is expected to rise further towards $3265 level on weak dollar and decline in U.S. treasury yields. Yields are moving lower as weaker than expected economic data from U.S. signaled slowdown in economic growth reinforcing expectations that Federal Reserve will cut rate twice this year. Markets are pricing in 57 basis points of rate cuts this year, with the easing projected to start in September. Moreover, investors will remain cautious ahead of consumer sentiment and inflation expectation data from U.S. If data shows consumer sentiments ebbed again in May, then we may see further upside in gold prices.

• Spot gold is likely to rise further towards $3265 level as long as it stays above $3170 level. MCX Gold June is expected to rise towards Rs 94,000 level as long as it stays above Rs 92,300 level

• MCX Silver July is expected to rise further towards Rs 97,000 level as long as it trades above Rs 94,500 level.

Base Metal Outlook

• Copper prices are expected to trade with positive bias on weakness in dollar, persistent decline in LME inventories and on signs of improved demand from China. Yangshan copper premium, which reflects demand for copper imported into China, reached $100 per ton, indicating recovery in demand. Further, US-China trade truce will continue to support prices. Meanwhile, sharp upside would be capped as weaker than expected economic data from U.S. raised concerns over economic health in the world's largest economy

• MCX Copper May is expected to rise towards Rs 868 level as long as it stays above Rs 852 level. On contrary, a break below Rs 852 level prices may slip towards Rs 844 level

• MCX Aluminum May is expected to correct further towards Rs 237 level as long as it stays below Rs 244 level. MCX Zinc May is likely to move south towards Rs 254.50 level as long as it stays below Rs 261.50 level.

Energy Outlook

• NYMEX Crude oil is likely to correct further towards $60 on weak global market sentiments and concerns about oversupply. US President Donald Trump said both the parties US and Iran are getting closer to nuclear deal, which could lead to sanctions being lifted and more crude oil entering the market. Moreover, easing geopolitical risk would weigh on oil prices. Additionally, adding to the negative sentiment IEA said world oil supply will rise more rapidly than previously expected this year as Saudi Arabia and other OPEC+ members unwind output cuts

• MCX Crude oil June is likely to slip towards Rs 5130 level as long as it stays below Rs 5360 level. A break below Rs 5130 level prices may dip further towards Rs 5050.

• MCX Natural gas May is expected to slip further towards Rs 280 level as long as it stays below Rs 302 level.

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