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Metal’s Outlook

Bullion Outlook

• Gold is expected to trade with positive bias amid weakness in the dollar and US treasury yields. Safe haven buying would bring more inflows into the yellow metal as higher than anticipated tariff’s from US has heightened trade war concerns. Prices would hold its gains amid political uncertainty, geopolitical conflicts and central bank buying. Meanwhile, focus will shifts towards any retaliatory measures from other nations which could bring more clarity. Furthermore, focus will also remain on key US job numbers.

• On the data front fresh addition of OI in OTM put strikes indicates gold to hold strong support near $3100 and on the upside immediate resistance exists near $3175 level. A move above $3175 would rise further towards $3200. MCX Gold June is expected to move in the band of Rs 90,300 and Rs 91,500 level. Only above Rs 91,500, it would turn bullish towards Rs 92,400.

• MCX Silver May is expected to rise further towards Rs 102,200 level as long as it trades above Rs 99,000 level. A move above Rs 102,200, it would turn bullish.

Base Metal Outlook

• Copper prices are expected to remain under pressure amid risk-off sentiments. More aggressive than expected reciprocal tariff measures from US would hurt global risk sentiments and hurt the demand outlook of base metals. US has imposed an additional 34% tariff on China, bringing total levies on the country to 54%. Further, clouding the economic outlook for the world’s largest copper consumer. Meanwhile, depleting inventory levels in LME and increasing bets of tariff on copper by US in coming weeks would limit its downside.

• MCX Copper April is expected to move lower towards Rs 878 as long as it trades under Rs 900. Only break below Rs 878 level prices may dip further towards Rs 871.

• MCX Aluminum April is expected to slip further towards Rs 242 level as long as it stays below Rs 248 level. MCX Zinc April is likely to move south towards Rs 265 level as long as it stays below Rs 270 level

Energy Outlook

• NYMEX Crude oil is expected to trade lower amid trade war concerns. A sweeping tariffs of 10% baseline, 34% on China and 20% on the EU, has raised concerns about potential economic fallout and weaker energy demand. Further, any retaliatory measures from other nation would hurt global risk sentiments and weigh on global oil demand. Meanwhile, improved crack spread and rise in prompt spread would increase demand from refiners. Additionally, US sanctions on Iranian oil and Trump’s threat for more sanctions on Russia would hurt the global supplies.

• On the data front, unwinding of OI in OTM put strike indicates correction in price. Further, increasing OI in ATM call strike indicates price to face stiff resistance near $72. MCX Crude oil April is likely to weaken towards Rs 5950 as long as it trades under Rs 6200 level.

• MCX Natural gas April is expected to trade lower towards Rs 335 level as long as it trades under Rs 354 level.

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