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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to slip towards $1909 levels as long as it sustains below $1935 levels amid strong dollar and surge in US treasury yields. Yields are rising on elevated crude oil prices and as investors weigh prospects for further US rate hikes. Market participants fear that elevated crude oil prices will hurt headline inflation in turn forcing major central banks across globe to continue with its monetary tightening policy. Meanwhile, investors will keep an close eye on ISM Services PMI data from US and Beige book to get cues on economic conditions

* MCX Gold prices is likely to move further south towards 59,000 level as long as it trades below the resistance level of 59,400 levels

* MCX Silver is expected to slip further till 72,800 level as long as it sustains below 74,000 level

Base Metal Outlook

* Copper prices are expected to trade with negative bias amid strong dollar, rising copper inventories at LME registered warehouses and risk aversion in the global markets. Further, weak economic data from China and decline in business activity in euro zone fueled worries about slowing global economic growth, denting demand for industrial metal. Meanwhile, sharp fall may be cushioned on hopes for more stimulus from China to revive its economic growth and support ailing property sector

* MCX Copper may slip further towards 732 levels as long as it trades below 742 levels

* MCX aluminium is expected to move south towards 199.50 level, as long as it trades below 201.60 level

Energy Outlook

* NYMEX Crude oil is expected to rise towards $88 as long as it trades above $86 level on fears over supply shortages after Saudi Arabia and Russia extended their voluntary output cut through December. Further, both the countries will review cuts on monthly basis and adjust them according to market conditions. However, further upside may be capped on strong dollar and concerns over slowing Chinese demand

* MCX Crude oil is likely to rise towards 7300 level as long as its sustains above 7100 levels

* MCX Natural gas is expected to move downwards towards 210 level as long as it stays below 220 level amid cooler US weather forecast

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