Copper prices are likely to hold its gains amid strong Chinese export numbers and softness in the dollar - ICICI Direct
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Metal’s Outlook
Bullion Outlook
• Gold is expected to hold the key support near $2010 and move higher towards $2045 on expectation of cooling US labor market. Further, buying from the central banks would also support the prices to stick to its gains. China in November increased its gold holdings to 71.58moz from 71.2moz in October. Meanwhile, focus will remain on the key US Non-farm payroll numbers, which may bring more clarity on the Fed’s future interest rate path. As per the CME Fed-Watch toll probability of rate cut in March has remained steady near 55%.
• MCX gold February is expected to find support near 62000, and rebound towards 62800. Only close below 61,900 it would weaken towards 61,500.
• MCX silver is likely to find support near 73800 and rebound towards 75200. Only close below 73800, it would weaken further towards 73200.
Base Metal Outlook
• Copper prices are likely to hold its gains amid strong Chinese export numbers and softness in the dollar. Meanwhile, all focus will remain on key US job numbers data, which may bring more clarity to the Fed’s stance on the interest rate cycle. Further, traders will remain cautious ahead of key inflation numbers from China on Saturday.
• MCX Copper December is expected to find support near the 20 day EMA at 713 and move towards the initial hurdle at 720. Only close below 708 the trend will turn negative.
• MCX Aluminium December is expected to find support near the multiple support zone near 193 and rebound towards 198. Only close below 193 it would weaken further towards 191.
Energy Outlook
• NYMEX Crude oil prices are expected to move in the range of $68 and $72 ahead of key economic numbers from US and China. Concerns over wanning demand from China and US, along with weaker economic activity in the Eurozone would limit the upside in the price. However, softness in the dollar and ongoing accommodative government policies from China could limit the downside below the $68 mark.
• MCX Crude oil is likely to find the floor near 5750 and rebound towards key resistance near 6050. Only a move above 6050, it would reverse the trend.
• MCX Natural gas December future is expected to find the floor near 207 and rebound towards 220. Only a move above 220, the trend would turn bullish.
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