MCX Copper January is expected to rise towards 820 level as long as it stays above 810 level - ICICI Direct
Bullion Outlook
Gold
* Spot gold is likely to slip back towards $2620 level amid strong dollar and surge in US treasury yields. Recent batch of economic data signaled resilience in the economy. Additionally, uncertainty surrounding tariff policy in Trumps tenure fueled concerns about future moves in US policy. As per CME FedWatch tool market is pricing in 95% chance of pause in rate cut this month. Meanwhile, sharp fall would be cushioned on strong central bank buying. China’s central bank expanded its gold reserves for a 2 nd month in December
* Spot gold is likely to slip back towards $2620 level as long as it stays below $2665 level. MCX Gold February is expected to slip back towards 76,850 level as long as it stays below 77,800 level.
* Spot Silver is likely to rise towards $30.40 level which is also (50-Day EMA) as long as it trades above 20-Day EMA at $29.80 level. MCX Silver March is expected to rise back towards 91,500 level as long as it trades above 90,000 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias as improved economic data from US and China signaled resilience in the economy. Moreover, expectation of robust economic data from US and rising hopes for more stimulus packages from China to revive economic growth will be supportive for industrial metal. Additionally, persistent decline in inventories at LME registered warehouses would be supportive for the prices.
* MCX Copper January is expected to rise towards 820 level as long as it stays above 810 level. A break above 820 prices would rally further towards 823 level
* MCX Aluminum Jan is expected to move north towards 242 level as long as it stays above 238.50 level. MCX Zinc Jan is likely to rise back towards 276 level as long as it holds the support near 272 level
Energy Outlook
* NYMEX Crude oil is expected to rise further towards $75.50 level amid larger than expected decline in weekly crude stockpiles. As Per API figures US Crude oil inventories fell by about 4 million barrels for the week ended 3 rd January. Moreover, investors will keep an eye on official data and if government data confirmed another withdraw then it would mark 4 th consecutive weekly decline. Additionally, prices may rally on concerns over tighter global supplies due to western sanctions on Russian and Iranian crude oil.
* NYMEX Crude oil is likely to rise towards $75.5 level as long as its stays above $73.50 level. MCX Crude oil Jan is likely to rise further towards 6500 level as long as it stays above 6275 level.
* MCX Natural gas Jan is expected to slip further towards 285 level as long as it stays below 315 level. A break below 285 level it may further skid to 280 level.
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