MCX Copper is expected to move south towards 745 level - icici Direct
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Metal’s Outlook
Bullion Outlook
• Spot gold is likely to face the hurdle near $2180 levels and slip towards $2150 levels amid strong dollar and surge in US treasury yields across curve. Dollar recovered as hotter than inflation data from US would add pressure on US Federal Reserve to keep interest rate elevated. Recent batch of economic data from US showed resilience in economy, pushing back expectation of early rate cuts by US Fed. Additionally, investors will keep and eye on new economic figures to get more clues on rate trajectory. Meanwhile, demand for safe haven may increase on mounting tension in Middle East and Russia. • MCX Gold April prices is likely to slid further towards 65,150 level as long as it stays below 65,850 levels • MCX Silver May is expected to follow gold and slip further towards 74,400 level as long as it sustains below 75,500 level.
Base Metal Outlook
• Copper prices are expected to trade with negative bias and retreat from its 11 month high amid strong dollar and risk aversion in the global markets. Market sentiments are hurt on fear that sticky inflation across major economies may force central banks to keep borrowing cost elevated, hurting economic growth and dent demand for industrial metal. Moreover, investors will remain cautious ahead of Chinese loan data for indications of demand from the top metals consumer • MCX Copper is expected to move south towards 745 level as long as it stays below 755 level. A move below 745 would open the doors for 740 levels. • Aluminum is expected to slip further towards 202 level as long as it stays below 205.0 level.
Energy Outlook
• NYMEX Crude oil is expected to rise further towards $82.50 level as both IEA and OPEC sticked to their forecast of a strong oil demand growth. Additionally, 3-2-1 crack spread rose to their highest since mid September, incentivizing more crude processing. Moreover, prices may rally on escalating tension in Russia and Middle East. Ukraine struck Russian oil refineries causing a fire at Rosneft's biggest refinery in one of the most serious attacks against Russia's energy sector. Meanwhile, sharp upside may be capped on strong dollar following hotter than expected inflation data and pessimistic global market sentiments. • MCX Crude oil is likely to rise towards 6850 levels as long as it trades above 6600 levels. • MCX Natural gas is expected to hold the support near 135 level and rise towards 150 level.
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