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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to hold the support near $2145 levels and rise towards $2170 levels amid weakness in US treasury yields and expectation of correction in dollar. US yields are moving south ahead of Federal Reserve monetary policy, where central bank is likely to hold the interest rates unchanged. While, more focus will be on policymakers updated economic & interest rate projections and statements from Fed chairman Jerome Powell. It is less likely that Fed may signal higher for longer outlook on policy given recent mixed batch of economic data. Additionally, demand for safe haven may increase on rising tension in Middle East and Russia.

• MCX Gold April prices is likely to rise further towards 65,900 level as long as it stays above 65,250 levels

• MCX Silver May is expected is expected to follow gold and rise further towards 75,800 level as long as it sustains above 74,600 level.

Base Metal Outlook

• Copper prices are expected to correct further as investors will continue to lock in profit from recent rally and ahead of major central bank monetary policy. Investors fear that higher borrowing cost for prolonged period will hurt global economic growth and hamper demand for industrial metal. However, sharp fall may be cushioned amid optimistic global market sentiments, improved housing data from US and persistent decline in LME inventories. Moreover, market participants are concerned over refined copper supply after Chinese smelters agreed to cut output.

• MCX Copper is expected to move south towards 750 level as long as it stays below 765 level. A move below 750 would open the doors for 746 levels.

• Aluminum is expected to slip further towards 202 level as long as it stays below 205.00 level.

Energy Outlook

• NYMEX Crude oil is expected to rise further towards $83.50 amid rise in risk appetite in the global markets, on signs of stronger demand and economic growth in US and China. Furthermore, prices may rally on signs of tighter global supplies, especially after some members of the OPEC signaled they will reduce production in the coming months and Ukrainian strikes on key Russian fuel refineries shut down production capacity. Moreover, data from API showed US crude oil stocks fell by 1.5 million barrels in the week ended 15th March. Sustained drop in gasoline inventories also points towards improving fuel demand.

• MCX Crude oil April is likely to rise towards 7000 levels as long as it trades above 6780 levels.

• MCX Natural gas April is expected to rise further towards 160 levels as long as it stays above 147 levels as US weather forecasts turn colder.

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