MCX Copper January is expected to rise towards 834 level as long as it stays above 823 level - ICICI Direct
Bullion Outlook
Gold
* Spot gold is likely to slip further towards $2640 level amid strong dollar and rise in US treasury yields. Additionally, recent batch of economic data from US signaled resilience in the economy, reinforcing expectations among investors that US Federal Reserve may only cut rates one time in 2025. Moreover, investors fear that any upside surprise in inflation report due tomorrow could further narrow down the bets on future easing. Further, President-elect Donald Trump plans of hefty import tariffs, tax cut and immigration restrictions are seen inflationary, adding to expectations of less aggressive easing cycle
* Spot gold is likely to slip back towards $2640 level as long as it stays below $2690 level. MCX Gold February is expected face resistance near 78,600 level and correct back towards 77,500 level
* Spot Silver is likely to slip further towards $29 as long as it trades below $29.90 level which is also 20-Day EMA. MCX Silver March is expected to slip towards 89,000 level as long as it trades below 91,000 level
Base Metal Outlook
* Copper prices are expected to trade with positive bias following improved economic data from China. Data showed commodity imports for December remained relatively stronger, reflecting progress in manufacturing activity. Additionally, China's top leaders have vowed to loosen monetary policy and adopt a more proactive fiscal policy this year, aiming to offset external pressures and revitalize domestic demand.
* MCX Copper January is expected to rise towards 834 level as long as it stays above 823 level. A break above 834 level copper prices may rise further towards 838 level
* MCX Aluminum Jan is expected to move north towards 248 level as long as it stays above 245 level. MCX Zinc Jan is likely to rise back towards 278 level as long as it stays above 272 level
Energy Outlook
* NYMEX Crude oil is expected to trade with positive bias and rise towards $80 level on fears over tightened supplies following US sanctions on Russian’s oil producers. Additionally, severely cold weather in US and Europe will push demand for oil. Meanwhile, weaker demand from China could overshadow the impact of tighter supply. Moreover, 6 European countries also called on the EU to lower its $60 a barrel price cap on Russian seaborne crude and refined oil products
* NYMEX Crude oil is likely to rise further towards $80 level as long as its stays above $77.0 level. MCX Crude oil is likely to rise further towards 6950 level as long as it stays above 6750 level.
* MCX Natural gas Jan is expected to slip further towards 330 level as long as it stays below 347 level. A break below 330 level it may further slip towards 322 level.
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