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Below are Views on Weekly Oulook - Gold, Silver, Crude Oil & Copper By Mr. Anuj Gupta, Vice President, IIFL Securities

As expected, last week gold prices increased sharply by 0.54% and made a lifetime high of 56,850 levels and closed at 56,674 levels. In the international market it test the 9 months high level of $1937 levels. However we saw corrections in silver prices. Silver prices corrected by 1.19% and closed at 68594 levels. In the international market silver prices corrected by 1.39% and closed at 23.92 levels.

Safe haven demand for gold due to the prospect of a global recession boosted the gold demand. Expectation of Less hawkish instances by the Federal reserve as US data showed a sustained downturn in US inflation. Weakness in dollar is also indicating the shift of investors from dollar to Gold for investment prospective.

Technically the trend of gold is positive. It has a strong support at 56200 levels and 55800 levels ($1920 levels) while resistance at 57200 and then 57700 levels ($1980 levels). We are expecting that gold may test 57200 levels very soon. Silver has a support at 67500 levels and then 66000 ($22 levels)levels while resistance at 69500 levels and then 71000 levels ($26 levels). We are expecting that silver may test 70000 levels very soon.

Crude  Oil:
Last week Brent crude oil price increased sharply by 1.31% and closed $88.66 per barrel. On MCX it increased by 1.99% and closed at 6617 levels. Demand from chineses economy on hopes that the ending of COVID restrictions in China will result in a sharp increase in economic activity and thus demand for energy due to the week long lunar new year holiday, will result in a jump in crude demand, particularly after Beijing relaxed almost all of its stringent anti-COVID restrictions earlier this month. The IEA increased its oil demand growth forecast for 2023 to 1.9 million barrels a day, from 1.7M barrels, which would leave global oil demand at a record 101.7M barrels a day in 2023.  
Technically Crude oil prices are expected to further trader higher. It has a strong support at $83 and then $80 levels, while resistance at $89 and then $92 levels. We are expecting it may test $90 levels very soon.

Base Metals :-   
From the base metals side we noticed that all base metals increased sharply last week. Copper increased by 0.60% and closed at contract high of 775.95 levels. Zinc increased by 2.69% and closed at 296.05 levels. Aluminium increased by 0.75% levels and closed at 220.40 levels.Chinese demand is supportive for the base metals. Inventory shortage due to higher cost of production is one of the reasons for the higher base metals prices. Next week we are expecting that the positive trend may remain intact and base metals prices again rally in the next week. Copper has a strong support at 750 levels and resistance at 795 levels. We are expecting that copper may test 785 to 790 levels very soon.

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