MCX Copper January is expected to rise towards 838 level as long as it stays above 824 level - ICICI Direct
Bullion Outlook
• Spot gold is likely to rise further towards $2720 level on weak dollar and decline in US treasury yields. Yields and Dollar are correcting from their recent highs as softer than expected core-inflation reading coupled with producer prices data not only reinforced expectation of more than 1 rate cut this year but also vanished the rate hike expectation this year which market had entertained. Meanwhile, sharp upside may be capped on expectation of mixed batch of economic data from US.
• Spot gold is likely to rise further towards $2720 level as long as it stays above $2670 level. MCX Gold February is expected rise further towards 79,100 level as long as it trades above 78,300 level
• Spot Silver is likely to rise further towards $31 as long as it trades above $30.30 level which is also 50-Day EMA. A break above $31 level prices may rally further towards $31.40 level. MCX Silver March is expected to rise towards 94,000 level as long as it trades above 91,500 level
Base Metal Outlook
• Copper prices are expected to trade with positive bias amid rise in risk appetite in the global markets and weak dollar following improved economic data from US. Further, better than expected economic data from China and persistent decline in LME inventories will also support prices. 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 838 level as long as it stays above 824 level. A break above 838 level copper prices may rise further towards 841 level
• MCX Aluminum Jan is expected to move north towards 252 level as long as it stays above 247 level. MCX Zinc Jan is likely to rise back towards 275 level as long as it stays above 270 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, weak dollar and large draw in US crude oil stockpiles will be positive for the prices. Further, strength in crude crack spread will also support prices as higher crack spread encourages refiners to boost their crude purchases. Meanwhile, sharp upside may be capped on easing of Middle East tensions after Israel and Hamas agreed to a ceasefire deal
• NYMEX Crude oil is likely to rise further towards $80 level as long as its stays above $77.50 level. MCX Crude oil Feb is likely to rise further towards 6930 level as long as it stays above 6700 level.
• MCX Natural gas Jan is expected to slip back 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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