Copper prices are expected to trade with negative bias amid pessimistic global market sentiments - ICICI Direct
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Metal’s Outlook
Bullion Outlook
• Spot gold is likely to hold the support near $2015 and rise towards $2050 level amid expectation of correction in dollar and softening of US treasury yields. Dollar may correct on anticipation that price pressure in US continued to moderate and is getting closer to central bank target of 2%, giving incentive to Fed to start cutting rates from March. Additionally, demand for safe haven may increase on mounting tension in Middle East.
• MCX Gold prices is likely to move north towards 62,500 level as long as it trades above the support level of 62,000 levels
• MCX Silver is expected to follow gold and rise back towards 73,000 level as long as it sustains above 71,800 level.
Base Metal Outlook
• Copper prices are expected to trade with negative bias amid pessimistic global market sentiments. Further, investors will remain cautious ahead of credit lending and trade data from China to gauge prospect for demand in world's biggest metal consumer. Moreover, market participants fear that global economic slowdown would hurt demand for industrial metal
• MCX Copper January is expected to slip further towards 710 level as long as it stays below 719 level. A move below 710 would open the doors towards 707 levels.
• Aluminum is expected to hold the support near 202.50 level and rise towards 205.50 levels.
Energy Outlook
• NYMEX Crude oil is expected to rise further towards $73.50 as long as it stays above $71.50 on Libyan supply outage and on fears that conflict between Hamas and Israel could grow into regional crisis disrupting Middle Eastern oil supplies. Additionally, major shipping companies are still avoiding red sea following attacks by Yemini Houthis. Meanwhile, sharp upside may be capped as EIA said US oil production will hit record highs over net 2 years. Investors will remain cautious ahead of EIA weekly inventory data. MCX Crude oil is likely to rise further towards 6200 levels as long as it trades above 5900 levels.
• MCX Natural gas is expected to rise towards 280 level as long as it trades above 263 level on forecasts for extremely cold weather next week that would boost demand. Additionally, investors fear that extreme cold could cause decline in production due to freezing oil and gas wells, pipes and other energy equipment
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