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BULLION

Gold headed for a second straight weekly gain as investors sought an inflation hedge amid a retreat in U.S. bond yields and equities. Bullion is holding near a two-month high even as central banks prepare to dial back stimulus and inflation-adjusted bond yields rise.

Recent volatility in markets and geopolitical tensions has also supported demand for haven assets. A report that Washington is allowing some Baltic states to send U.S.-made weapons to Ukraine stoked concerns about a standoff with Russia.

MCX Gold February futures expected trade right with higher side resistance at 48500 and support at 48300. MCX Silver March futures expected to consolidate in small range after sharp surge in last couple of days. It has resistance at 65700 and support at 64800.

COMEX Gold

COMEX Silver

ENERGY

The sizzling oil rally is taking a breather going into the weekend. WTI crude futures slid $2.61, or 3.1%, to $82.94 a barrel. The contract earlier fell as much as 3.2%, also the most since Dec. 20, after rising to its highest since October 2014 on Wednesday. Brent futures slid almost 3%, trimming this month’s gains to ~10%. While this retreat comes after a surprise gain in U.S. crude inventories, for the longer-term, it’s indicative of things to come this year.

MCX Crude oil February futures is in profit booking mode and could head towards 6200 while intraday bounce to 6320 odd level used as short selling opportunity. Meanwhile, MCX Natural Gas January futures could show short covering rally amid highly oversold condition. It is having support at 280 and resistance at 296.

MCX Crude Oil 

MCX Natural Gas

BASE METALS

Base metals traded higher on Thursday on supply crunch and higher demand. Metal prices rose supported by expectations of further policy easing in China.

Nickel’s gains have been particularly explosive because of critically low stockpiles, including in top consumer China. Traders may find some respite in coming weeks from seasonal factors, which are starting to be reflected in the market. Both London and Shanghai futures were in retreat after nickel held on the London Metal Exchange was unchanged on Thursday.

Metals tune will be slightly bearish on back of risk-off sentiments. Among the base metals pack, MCX Lead January futures expected to trade with negative bias and level below 184 could open 180 and 178.

LME Copper

LME Nickel

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