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Metal’s Outlook

Bullion Outlook.

• Spot gold is expected to find support near $1900 and rebound towards the initial hurdle near $1935 amid softness in the dollar and decline in the US treasury yields. Meanwhile, the focus will be on key US CPI numbers and initial jobless claims numbers due today, which may provide some insight into whether the Federal Reserve will raise interest rates again or not in its next policy meeting

• MCX Gold futures is likely to find support near 58700 and move higher towards 59400. Only a move below 58700, it would turn weaker towards 58400 levels.

• MCX Silver is expected to rebound towards 71200, as long as it holds above 69500 levels

Base Metal Outlook

• Copper prices are expected to remain under pressure amid weaker demand from top consumer China. Further, continuous rise in inventories at LME registered warehouse could hurt metal prices. However, expectation of fresh stimulus from China to support the economic recovery could limit its downside. Meanwhile, focus will shift towards today’s CPI data from US, which may bring more clarity on the futures interest rate path.

• MCX Copper is likely to consolidate in between 738 and 727. Only a move outside of the range will give more clarity in the trend

• MCX aluminium is expected to weaken towards 199, as long as it trades under the 202 mark..

Energy Outlook

• NYMEX Crude oil is expected to extend its gains towards the $85 mark amid worries over tight supplies. The breakout of the higher band of the 9 month consolidation range could support the bullish momentum in oil prices. Immediate support for price holds near the 10 day EMA at $82.00. Meanwhile, investors will be waiting for fresh clues ahead of today key US inflation data.

• MCX Crude oil is likely to rise towards 7100 as long as it trades above the 6800 mark.

• MCX Natural gas is expected to hold its gains amid soaring temperature in US. Further rising supply concerns amid worker strike in Australia could also help the gas price to trade firm. MCX Natural gas is expected to rise towards the 252 mark as long as it trades above the 238 mark.

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