MCX Copper January is expected to slip towards 822 level as long as it stays below 840 level - ICICI Direct
Bullion Outlook
• Spot gold is likely to face stiff resistance near $2720 level amid strong dollar. Further, improved economic data from US renewed hopes that US Fed would reduce the pace of rate cuts and likely to ease just once in 2025. Meanwhile, demand for safe haven may increase as investors await Trump inauguration and his policies on trade, tax and immigration which are considered to be inflationary and spark trade war
• Spot gold is likely to face stiff resistance near $2720 level and slip further towards $2665 level. A break below $2665 level prices may dip further towards $2650 level. MCX Gold February is expected slip further towards 78,500 level as long as it trades below 79,300 level
• Spot Silver is likely to slip further towards $29.50 as long as it trades below $30.35 level which is also 50-Day EMA. A break below $29.50 level prices may slip further towards $29 level. MCX Silver March is expected to dip towards 89,000 level as long as it trades below 92,000 level
Base Metal Outlook
• Copper prices are expected to trade with negative bias amid strong dollar. Further, investors await Donald Trump’s presidential inauguration and clarity on incoming administration policies. Further, People’s Bank of China left its benchmark loan prime rate unchanged, as weakening Yuan limited China's monetary easing efforts. However, sharp fall may be cushioned on persistent decline in LME inventories and on hopes for more stimulus packages from Beijing to support economic growth
• MCX Copper January is expected to slip towards 822 level as long as it stays below 840 level. A break below 822 level copper prices may slip further towards 818 level
• MCX Aluminum Jan is expected to correct towards 252 level as long as it stays below 256 level. MCX Zinc Jan is likely to slip back towards 275 level as long as it stays below 278 level
Energy Outlook
• NYMEX Crude oil is expected to trade with negative bias and slip further towards $76 level on strong dollar and easing tensions in the Middle East as Hamas and Israel exchanged hostages and prisoners under a recently signed ceasefire. Additionally, market expects Houthi militia to halts its attack on ships in Red Sea now. Ease in geopolitical tension in middle east should remove security premium out of oil prices. However, sharp fall in the prices may be cushioned as supply concerns persisted after US imposed 2-rounds of sanctions in the past two weeks on Russia's energy sector
• NYMEX Crude oil is likely to slip further towards $76 level as long as its stays below $78.50 level. MCX Crude oil Feb is likely to slip further towards 6600 level as long as it stays below 6850 level.
• MCX Natural gas Jan is expected to slip further towards 330 level as long as it stays below 355 level. A break below 330 level prices may slip further towards 324 level.
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