Copper prices are expected to hold its ground and move higher on tight supplies and strong demand from US - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is expected to trade higher and move towards $4500 per ounce on weaker dollar and growing prospects of more rate cuts from US Federal Reserve. As per the CME Few-watch tool March rate cut probability has gone above 45%, whereas January rate cut probability held near 20%. Further, expectation of moderation in US GDP numbers and sluggish growth in US labor market would force Fed members to support loose monetary policy. For the day, spot gold is likely to hold support at $4430 and move higher towards $4500 per ounce. Only a move above $4500 per ounce it would rise towards $4550 per ounce.
* MCX Gold Feb is likely to move higher towards Rs.138,200 as long as it holds above 135,500. A move above Rs.138,200, it would rise towards Rs.139,000.
* MCX Silver March hold strong support at Rs.208,500 level and move higher towards Rs.215,000. Above Rs.215,000 it would rise toward Rs.218,400.
Base Metal Outlook
* Copper prices are expected to hold its ground and move higher on tight supplies and strong demand from US. Lower treatment and refinery charges for the coming year has again sparked concerns over raw material availability. Prices would also get support on growing bets of fresh round of stimulus from China to counter slowdown in the property sector. Moreover, increasing prospects of lose monetary policy in US would again strengthen the bullish bias in the red metal. Meanwhile, investors will eye on key economic numbers from US to get more clarity.
* MCX Copper Dec is expected to hold support near Rs.1112 and move higher towards Rs.1129 level. A move above Rs.1129 level it would open the doors towards Rs.1135-Rs.1140 level.
* MCX Aluminum Dec is expected to rise towards Rs.287 level as long as it stays above Rs.280 level. Only a move below Rs.280, it would slip towards Rs.275. MCX Zinc is hovering below 20-day EMA at Rs.305.50. As long as it stays under Rs.305.50 it would remain under pressure and slide towards Rs.299 mark.
Energy Outlook
* NYMEX crude oil is expected to hold support near $57 per barrel and move higher towards $59 amid escalating geopolitical tension between US and Venezuela. Further buildup of military action by US could trigger supply risk. Meanwhile, higher global supplies from OPEC+ and expectation of steady flows in the first quarter would limit its upside. Furthermore, lower crack spread could hurt demand from the refiners. Meanwhile, investors will eye on key US advance GDP numbers and further developments between Russia and Ukraine peace negotiation for more clues.
* On the data front, a strong put base at $55 would act as strong support. On the upside a strong call base at $60 would act as major hurdle. MCX Crude oil Jan is likely to hold support at Rs.5100 and move higher towards Rs.5320 level. Only move above Rs.5320 it would rise towards Rs.5400.
* MCX Natural gas Jan is expected to face hurdle near Rs.335 and move lower towards Rs.310 level.
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