IGI Logo

Metal’s Outlook:

Bullion Outlook

• Spot gold is likely to rise further till $2060 level as long as it sustains above $2040 level amid expectation of correction in dollar and US treasury yields. Dollar and yields may move south on anticipation of weak economic data from US, which may further reinforce expectation of rate cut by US Fed as early as March. As per CME Fedwatch tool traders are pricing in 70% chance for the 25bps rate cut in March, with several more rate cuts in the year. Additionally, demand for safe haven may increase on mounting tension in Middle East. After 100 days of fierce war between Hamas and Israel, there is no end to this war, threating to spread across Middle East

• MCX Gold prices is likely to move north towards 62,800 level as long as it trades above the support level of 62,200 levels

• MCX Silver is expected to follow gold and rise back towards 73,300 level as long as it sustains above 72,000 level.

Base Metal Outlook

• Copper prices are expected to trade with negative bias as China’s central bank left medium-term policy rate unchanged defying market expectations for cut. Moreover, projection of disappointing economic data from major countries across globe will hurt prices. Additionally, investors will remain cautious ahead of Chinese data on investment, industrial output, GDP and house prices scheduled this week for clues on future demand prospects in the world's biggest metals consumer

• MCX Copper is expected to slip towards 711 level as long as it stays below 718 level. A move below 711 would open the doors towards 708 levels.

• Aluminum is expected to slip further towards 198.50 level as long as it stays below 201.50 level.

Energy Outlook

• NYMEX Crude oil is expected to rise further towards $74 as long as it stays above $71 level on concern over rising tension in Middle East and Libyan supply outage. As per Media sources, ship tracking data showed more tankers altering course away from the Red Sea, increasing the cost of shipping and the time it takes to transport. Additionally, slew of weak economic data from US boosted bets that the Fed might start cutting interest rates as early as March. Moreover, frigid weather condition in US and Canada has led to shutting in some oil production

• MCX Crude oil Feb is likely to rise further towards 6150 levels as long as it trades above 5880 levels.

• MCX Natural gas is expected to slip further towards 248 level as long as it trades below 260 level

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631