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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to slip further towards $2300 level amid firm dollar and surge in US treasury yields. Yields and Dollar are moving north as recent batch of economic data from US showed resilience in economic activity, reinforcing expectations that US Federal Reserve would delay its first rate cut and even pushed back 2 rate cut expectations. Manufacturers in US reported higher prices for range of inputs, signaling good inflations to accelerate in coming months. Spot gold is likely to slip towards $2300 level (50-Day EMA) as long as it stays below $2355 level (20-Day EMA). A sustain break below $2300 prices may move towards $2280/$2250 levels

• MCX Gold June prices is likely to slip further towards 70,800 level as long as it stays below 72,000 level. As break below 70,800 level prices may slide further towards 70,300 level (50-Day EMA).

• MCX Silver July is expected to follow gold and slip towards 89,400 level as long as it stays below 91,300 level

Base Metal Outlook

• Copper prices are expected to correct further amid strong dollar and risk aversion in the global markets. Further, poor demand in the near term would continue to weigh against speculative bets that triggered a broad based surge in base metals. Furthermore, prices may slip as the prospect of higher for longer US interest rates raised worries around demand growth. Moreover, International Copper Study Group said global refined copper market showed a 125,000 ton surplus in March

• MCX Copper is expected to slip further towards 880 level (20-Day EMA) as long as it stays below 903 level. A break below 880 level prices may move further south towards 870 level

• Aluminum is expected to move south towards 236.50 level (20-Day EMA) as long as it remains below 242 level. A break below 236.5 level prices may slide further towards 234 level.

Energy Outlook

• NYMEX Crude oil is expected to slip further towards $75.50 levels amid strong dollar and unexpected build in US crude oil inventories. Further, hawkish FOMC meeting minutes and better than expected economic data from US, reinforced expectations that US Fed would not only delay its rate cut but will also reduce the number of rate cuts. High interest rates increase the cost of borrowing and slowdown economic activity and dampen oil demand. Moreover, Investors are also looking ahead of the OPEC+ meeting, scheduled on 1 st June, where the group will decide its output policy. NYMEX crude oil may slip further towards $75.5 level as long as it stays below $78 level.

• MCX Crude oil June is likely to slip towards 6300 levels as long as it trades below 6500 level

• MCX Natural gas is expected to slip further towards 217 level as long as it stays below 230 level

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