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Metal’s Outlook

Bullion Outlook

* Spot Gold is likely to trade with negative bias amid expectation of further gains in dollar and US treasury yields. Additionally, demand for safe haven may decline amid ease in geopolitical tension in Middle East following US and Iran agreeing to hold talks in Oman despite of differences about the agenda. Additionally, hopes for aggressive interest rate cut by US Federal Reserve started fading after US President Donald Trump named former Fed Governor Kevin Warsh as his choice to succeed Jerome Powell as Fed Chair. Investors even expect him to rein in Fed’s balance sheet. Meanwhile, key US labor data will be delayed by the partial government shutdown. Investors will remain cautious ahead of BOE and ECB monetary policy

* MCX Gold April is expected to slip further towards Rs.148,000-Rs.144,000 level as long as it stays below Rs.160,000 level.

* MCX Silver March is expected to slip towards Rs.250,000-Rs.245,000 level as long as it stays below Rs.290,000 level.

Base Metal Outlook

* Copper prices are expected to trade with negative bias amid strong dollar and risk aversion in the global markets. Further, prices may slip on signs of weak demand. Inventories rose at major trading hubs in Shanghai, London, and New York. Furthermore, Yangshan copper premium, which reflects Chinese appetite for imported copper, was at $36 a ton, compared with above $40 entering January. Additionally, expectation of disappointing economic data from major economies would weigh on copper prices

* MCX Copper Feb is expected to slip towards Rs.1200 level as long as it stays below Rs.1270 level. A break below Rs.1200 level prices may be pushed towards Rs.1190-Rs.1180 level

*  MCX Aluminum Feb is expected to slip towards Rs.300 level as long as its stays below Rs.317 level. MCX Zinc Feb is likely to face stiff resistance near Rs.327 level and slip further towards Rs.317 level

Energy Outlook

* Crude oil is likely to trade with positive bias as geopolitical tension in Middle East and Eastern Europe remain elevated raising concerns over supply disruption. US and Iran has agreed to hold talks in Oman but there is a difference in agenda. Iran has aimed to discuss its longrunning nuclear dispute with Western countries while the U.S. also wants to include Iran's ballistic missiles. Investors fear that planned talks between 2 nations may collapse. Moreover, prices may rally as EIA and API figures showed drawdown in inventory, signaling demand. Meanwhile, strong dollar may weigh on oil prices

* MCX Crude oil Feb is likely to rise towards Rs.5950-Rs.6000 level as long as it stays above Rs.5650 level.

* MCX Natural gas Feb is expected to slip towards Rs.280 level as long as it stays below Rs.330 level. A break below Rs.280 level prices may fall towards Rs.270 level

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