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Bullion Outlook

• Gold prices are expected to pause its rally amid rising hopes of 25 bps hike in the next FOMC meeting. The CME FedWatch toll indicates a 78% probability of rate hike after the hawkish comment from the Fed member

• MCX Gold is likely to dip towards the key support near 59900 as negative divergence between price and oscillator RSI would bring long liquidation at higher end of the range. On the upside, 60900- 61200 would act as major resistance. Close below 59900 would open the doors for 59600

• MCX Silver has formed a bearish engulfing pattern, which could also bring correction in the price towards 74900-74500

Base Metal Outlook

• Base metals could also correct amid a reversal in the dollar as hopes of a further rate hike by the Fed has increased. Meanwhile copper prices could find support from tight supplies and falling inventories in LME and SHFE

• MCX Copper April futures could slip towards the support near 784-783 level as price faced rejection near the higher Bollinger band. For the day 799 would act as key resistance

• MCX Aluminium could also face resistance at last week’s high at 212 and slip towards the immediate support at 207.50-207

Energy Outlook

• Crude oil futures are expected move in a sideways range of 6650-6850 as rebound in dollar could limit its upside. In contrast, supply tightness would limit its downside. On the upside, above 6850 the trend will again turn bullish towards 6950-7000

• Natural gas futures are likely to hold its gains above the 170 mark as it has formed a bullish engulfing candle stick pattern in its daily charts. Moreover, oversold RSI could also support it to rebound towards 178-180 zone

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