MCX Copper January is expected to find the floor near 789 and rebound towards 800 - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot Gold is expected to hold its gains and move towards $2675, amid increasing safe haven demand. Prices would find support on geopolitical uncertainty and Trump’s tariff concerns. Further, increasing prospects of rate cut by PBOC and ECB would also help the yellow metal to hold its gains. On the other hand strong dollar and higher US treasury yield might check its upside.
* Spot gold has moved above the 20 and 50 day EMA’s suggesting bullish bias. On the upside, $2700 would act as major hurdle. MCX Gold February is expected to move towards 78,200, as long as it trades above 77,200.
* Spot silver witnessed a sharp rebound from its 50 week EMA at $28.80 and is expected to move towards the key resistance near $30. MCX Silver March is expected to hold the support near 88,000 and rise towards initial hurdle at 90400 (50 DEMA).
Base Metal Outlook
* Copper prices are expected to consolidate near its key supports amid growing bets of more stimulus measures from China to support the economy. Further, increasing prospects of lower rates by PBOC in 2025 would bring a recovery in metals prices. PBOC in its latest announcement said it was likely to cut the rates from current levels to 1.5% in the year 2025.
* MCX Copper January is expected to find the floor near 789 and rebound towards 800. Above 800, it would open the doors towards 805. On the contrary, move below 788 it would turn weaker towards 784.
* Aluminum is expected to find the floor near 240 and move towards 244,. MCX Zinc is expected to face the hurdle near 280 and dip towards 274.
Energy Outlook
* NYMEX Crude oil is likely to extend its rally towards $75 on China optimism. Further, improved demand from US and supply concerns amid heightened tension between Russia and Ukraine would also provide support to oil prices. Meanwhile, a stronger dollar could restrict its upside.
* On the data front, closer of OI in ATM and OTM call strike indicates more upside in prices. In NYMEX, next major hurdle is seen near $75 as higher OI concentration on the call side observed at 75 call strike. At the same time OI concentration at 70 strike put has increased, indicating strong support. MCX Crude oil January is likely to hold the support near 6180 and move towards 6400.
* MCX Natural gas January future is expected to find its ground near 305 and rebound towards 328. A move above 328 would bring fresh buying interest and push price towards 340. Prices are likely to trade with positive bias on forecast of sharp drawdown in inventories. Further, increased LNG export data and forecast of cooler weather would support prices.
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