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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to hold the support near $2015 and rise towards $2045 level amid weakness in dollar and softening of US treasury yields. Dollar and yields may move south ahead of major economic data from US, as it would shed some light on when Fed would start cutting rates. US CPI data is likely to show that prices pressure continued to ease further and Jobless claims data is projected to show that more number of people filled for benefits. Colling inflation and crack in labor market may give US Federal Reserve more incentive to start cutting rates as early as March 2024. Additionally, demand for safe haven may increase on escalating tension in Middle East.

• MCX Gold prices is likely to move north towards 62,400 level as long as it trades above the support level of 61,800 levels

• MCX Silver is expected to follow gold and rise back towards 72,500 level as long as it sustains above 71,500 level.

Base Metal Outlook

• Copper prices are expected to trade with positive bias amid weak dollar and optimistic global market sentiments. Further, consistent decline in stockpile at LME registered warehouses would lend support to prices. Moreover, prices may rally on expectation of further monetary easing by PBOC. Meanwhile, investors will remain cautious ahead of trade data from China to gauge prospects for demand in world’s biggest metal consumer

• MCX Copper January is expected to rise back towards 721 level as long as it stays above 711 level. A move above 721 would open the doors towards 725 levels.

• Aluminum is expected to hold the support near 202.50 level and rise towards 204.50 levels.

Energy Outlook

• NYMEX Crude oil is expected to rise back towards $73 as long as it stays above $70.50 on weakness in dollar and concern over supply disruption as investors fears that conflict between Hamas and Israel could widen to other areas of Middle East. However, sharp upside may be capped as surprise build up in crude oil inventories raised worries about demand in the largest oil market. • MCX Crude oil is likely to rise further towards 6050 levels as long as it trades above 5850 levels. • MCX Natural gas is expected to slip further towards 237 level as long as it trades below 255 level on forecasts of warmer than normal temperature in late January. Meanwhile, investors will remain cautious ahead of EIA weekly inventory. It is expected to show a 120Bcf draw on underground storage for the week ending 5 th January

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