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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to slip further towards $2360 level amid strong dollar and rise in US treasury yields. Yields and Dollar are moving north as recent FOMC meeting minutes showed that most of the policymakers are worried over stickiness in inflation and see rates staying at current level. Meanwhile, sharp fall in gold may be cushioned on expectation of disappointing economic data from US. Additionally, data released since Fed meeting has shown inflation cooling and job growth slowing more than expected. Spot gold is likely to slip towards $2360 level (20-Day EMA) as long as it stays below immediate resistance of $2400 level. A sustain break below $2360 prices may move towards $2340 level

* MCX Gold June prices is likely to slip further towards 72,300 level ( 20- Day EMA) as long as it stays below immediate resistance of 73,350 level. Strong resistance lies near 74,000 level.

* MCX Silver July is expected to follow gold and slip towards 92,000 level as long as it stays below 93,800 level

Base Metal Outlook

* Copper prices are expected to trade with the negative bias amid strong dollar, risk aversion in the global markets and lack of strong physical demand. Further, recent FOMC meeting minutes showed policymakers fear that disinflation would likely take longer than previously though forcing Fed to delay rate cuts. Higher borrowing cost will hurt economic growth and dampen demand for industrial metal. Moreover, China's April refined copper output rose, dismissing concerns over major smelters 'plan to cut production in March

* MCX Copper is expected to slip further towards 880 level (20-Day EMA) as long as it stays below 906 level. On contrary, break above 906 prices may move up towards 917 level

* Aluminum is expected to move south towards 239 level (10-Day EMA) as long as it remains below 244 level. A break below 239 level prices may slid further towards 236 level (20-Day EMA).

Energy Outlook

* NYMEX Crude oil is expected to slip further towards $75.50 levels amid strong dollar and rise in US crude oil inventories, casting doubt over demand in world’s largest oil consumer. Furthermore, recent FOMC meeting minutes showed policymakers are concerned over higher inflation. Stalling disinflation may discourage Fed policymakers from backing sooner rate cuts. Meanwhile, market expects OPEC+ to extend its voluntary output cut through third quarter of this year when it meets on 1 st June. NYMEX crude oil ,ay slip further towards $75.5 level as long as it stays below $78 level (10-Day EMA)

* MCX Crude oil June is likely to slip towards 6300 levels as long as it trades below 6550 level

* MCX Natural gas is expected to rise towards 240 level as long as it stays above 230 level amid forecasts for hot temperatures later this week in Texas, the US Midwest, and the Northeast. Meanwhile, investors will remain cautious ahead of EIA Natural gas inventories

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