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Bullion Outlook

• Gold prices are expected to hold their gains as hopes for a pause in rate hike by the Fed have increased after the decline in CPI numbers. Furthermore, expectation of a decline in PPI numbers could also support the bullish outlook in bullion

• MCX Gold is hovering above the bullish crossover of 10 and 20 day EMA, with formation of higher high pattern. The 10 day EMA would act as key support. Hence, as long as it holds above 60100, we expect it to again move towards 61100. Only a close below 59900 would bring a correction in the trend

• MCX Silver is expected to march towards 77200 as long as it sustains above the key support at 74800

Base Metal Outlook

• Base metals are likely to trade on a weaker note as contraction in manufacturing activity in major economies would diminish the demand outlook of the metals

• MCX Copper futures have been trading under the 20 day EMA support at 770. The 20 day EMA at 770 would act as key resistance for the price and weaken it towards 760-758 levels

• MCX Aluminium is likely to slip towards the 204 zone as long as it trades under the 20 day EMA at 208

Energy Outlook

• Crude oil futures are expected to hold its gains amid weaker dollar and tightness in global oil supplies. In MCX Crude oil April futures has moved above the 4 month highs of 6735 and most importantly it has closed above the 200 day EMA. Hence, as long as it holds above 6735, price would rise towards 6900-7000.

• Natural gas futures are likely to trade on a weaker note amid expectation of build-up of inventories and mild weather in US. MCX Natural Gas April future is expected to move towards 170 as long as it trades below 180

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