IGI Logo

Metal’s Outlook

Bullion Outlook

* Spot gold is likely to rise back towards $2345 level amid soft dollar and decline in US treasury yields. Dollar and Yields may move further south as weaker than expected JOLTS report followed data showing 2 nd straight month of slowdown in manufacturing activity and an unexpected decline in construction spending, raised hopes that US Federal Reserve may start cutting rates by September. Moreover, prices may rally as ADP Non-Farm employment change data is forecasted to show softening in labor market. Additionally, investor will also remain vigilant ahead of Services PMI. Spot gold prices may rise further towards $2345 level (20-Day EMA) as long as it stays above $2305 level 

* MCX Gold Aug prices is likely to rise further towards 72,600 level as long as it stays above 71,600 level. A break above 72,600 level prices may rise further towards 73,000 level.

* MCX Silver July is expected to slip further towards 88,000 level as long as it stays below 90,300 level (20-Day EMA)

Base Metal Outlook

* Copper prices are expected to trade with the negative bias amid risk aversion in the global markets, lackluster demand in top consumer China and rising inventories at LME and SHFE registered warehouses. Further, prices may slip as premium in China to import copper into the country continued to remain below zero, signifying weak physical demand. Meanwhile, weaker than expected economic data from US, cemented expectations that Federal Reserve would cut interest rates later this year

* MCX Copper is expected to slip further towards 851 level (50-Day EMA) as long as it stays below immediate resistance of 872 level. Copper faces strong resistance near 883 level (20-Day EMA), only close above this level may change the direction

* Aluminum is expected to move south towards 237 level as long as it stays below 242 level (10-Day EMA). On Contrary, a break above 242 level prices may rally till 245 level

 Natural Gas Energy Outlook

* NYMEX Crude oil is expected to extend its losses and slip further towards $72 on worries over supply rising later in 2024 and on signs of weakening demand growth. Further, prices may slip as data showed build in Crude and fuel stockpiles, adding to concern around demand growth. As per API figures crude stocks rose by more than 4 million barrels in the week ended May 31. Additionally, Gasoline stocks also rose more than 4 million barrels. Moreover, all eyes will be on official stockpiles data from EIA. NYMEX Crude oil is likely to slip further towards $72 as long as it trades below $74 level

* MCX Crude oil June is likely to slip further towards 6000 level as long as it stays below 6250 level

* MCX Natural gas June is expected to slip towards 209 level (20-Day EMA) as long as it stays below 224 level. A break below 209 level prices may slide further towards 202 levels

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631