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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to find support near $2330 levels and rise further towards $2365 level amid weakness in dollar and softening of US treasury yields. Further, demand for safe haven may increase on mounting tension in Middle East after Israel airstrike in the Gazan city of Rafah killed people in a tent camp. Investors fear that Rafah strike could hinder ceasefire talks. Moreover, expectation of disappointing economic data from US would support bullion prices to trade higher. Spot gold is likely to hold the support near $2330 level and rise back towards $2365 level. On Contrary, break below $2330 level prices may slip towards $2300 (50-Day EMA)

• MCX Gold June prices is likely to rise back towards 72,400 level (10-Day EMA) as long as it stays above 71,500 level. A break above 72,400 level prices may rise further towards 72,700 level.

• MCX Silver July is expected to follow gold and rise towards 96,100 level as long as it stays above 94,000 level

Base Metal Outlook

Copper prices are expected to trade with the positive bias amid weakness in dollar and optimistic global market sentiments. Further, improved data from China suggest that economic activity is gaining momentum and policies to bolster the economy were starting to take effect. Additionally, large cities in China are following the Government’s pledge to support the struggling property sector which could strengthen the base metals rally. Moreover, expectation of improved housing data from US would support industrial metal prices

• MCX Copper is expected to rise further towards 910 level as long as it stays above 892 level. A break above 910 level prices may move further north towards 917 level

• Aluminum is expected to move north towards 245 level as long as it stays above 240 level (10-Day EMA). On contrary, break below 240 level prices may slip towards 238 level (20-Day EMA) ICICI Securities – Retail Equity Research ICICI Securities – Retail Equity Research

Energy Outlook

• NYMEX Crude oil is expected to rise towards $80 level amid weakness in dollar and rise in risk appetite in the global markets. Further, investors await inflation data from major western countries to assess future monetary policies. Moreover, market expects OPEC+ to extend its voluntary output cut of 2.2mbpd in second half of the year when it meets on June 2nd, even though organization stated it expects oil demand growth of 2.25 million barrels per day for 2024. Additionally, reports of death of Egyptian solider caught by Israeli strikes close to Gazan city of Rafah would add risk premium on oil prices.

• MCX Crude oil June is likely to rise towards 6650 levels as long as it trades above 6450 level

• MCX Natural gas June is expected to rise back towards 242 level as long as it stays above 228 level. A break above 242 level will open doors for 248 level

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