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Bullion Outlook

* Gold prices made fresh one month low on Friday after Core PCE price index showed inflation rose more than expected in January while consumer spending rebounded sharply by 1.8% in January. Series of robust economic data reinforced expectations that Fed will remain hawkish. The Core PCE price index jumped 0.6% in January against expectation of 0.4%

* Silver futures hit the most and slide more than 1.5% on Friday after a sharp rally in dollar index, which hit its 7 week highs at 105.10

* Gold likely to trade with a negative bias amid strong dollar and higher yields. Upbeat economic data and higher inflation number from US would support the Fed’s aggressive policy stance, which could further dampen the demand outlook for the precious metals. MCX gold is likely to slide towards the next support at 55200/55000. On the upside 10 day EMA at 56000 would act as key resistance for the price

* MCX Sliver is likely to slide towards 64000-63500 zone

Base Metal Outlook

* Base metals hit the lowest level in nearly 7 weeks after up tick in US PCE numbers fuelled the expectation that US rates will remain elevated for longer duration, raising economic growth concerns and hampering demand for the metal.

* Aluminium prices slipped despite of decision by the US to impose steep tariffs on Russian metal

* Copper futures hit the most in last couple of days as import premiums in China fell again this week along with build-up in inventory levels but at a slower rate

* Copper is expected to move lower amid strong dollar and weakness in global equities. In MCX Copper has slide below the 50 day EMA support at 755, suggesting weakness. Hence as long as, price remains under 755 it is likely to weaken further towards 744-740

Energy Outlook

* Natural gas gained the most on Friday amid expectation that demand will increase due to colder temperature in the US

* Crude oil prices rebounded from its days low as supply concerns outweighed the build-up in US inventories. Further, Russia has halted oil supplies to Poland via Druzhba pipeline and European Union agreed on a 10th packages of sanction on Russia

*- Crude is likely to trade with negative bias amid strong dollar and weak global market sentiments. Additionally, the Fed’s preferred inflation gauge unexpectedly accelerated in January while consumer spending surged last month by most in nearly 2 years. Robust economic figures from US reinforced expectations that Federal Reserve is likely to keep ratcheting up interest rates. MCX crude oil is expected to weaken towards 6180 as long as price trades under the 50 day EMA at 6445

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