MCX Copper January is expected to slip towards Rs 820 level as long as it stays below Rs 838 level - ICICI Direct
Bullion Outlook
• Spot gold is likely to rise further towards $2730 level amid weakness in dollar and softening of US treasury yields. Yields slipped as US President Donald Trump did not impose tariffs on his first day in office, signaling gradual approach to policies and reduce the concerns over rising inflation. While, trump said he was thinking of imposing 25% tariffs on imports from Canada and Mexico, though details were lacking. Additionally, lack of solid tariff measures turned investors a little more dovish on the US rate outlook
• Spot gold is likely to rise towards $2730 level as long as it trades above $2690 level. A break above $2730 level prices may rise further towards $2750 level. MCX Gold February is expected to rise back towards Rs 79,200 level as long as it stays above Rs 78,300 level
• Spot Silver is likely to rise further towards $31.0 as long as it trades above $30.20 level. MCX Silver March is expected to rise towards Rs 93,000 level as long as it trades above ?90,500 level
Base Metal Outlook
• Copper prices are expected to trade with negative bias as China's central bank left its benchmark loan prime rate unchanged for 3 rd consecutive month. Further, prices may dip on expectation of disappointing economic data from major economies and rise in LME inventories. However, sharp fall in prices may be cushioned following news that the US president Donald Trump will refrain from immediately implementing aggressive tariffs
• MCX Copper January is expected to slip towards Rs 820 level as long as it stays below Rs 838 level. A break below Rs 820 level copper prices may slip further towards Rs 815 level
• MCX Aluminum Jan is expected to rise towards Rs 258 level as long as it stays above Rs 255 level. MCX Zinc Jan is likely to rise towards Rs 280 level as long as it stays above Rs 276 level
Energy Outlook
• NYMEX Crude oil is expected to trade with negative bias and slip further towards $75 level on easing tensions in the Middle East following ceasefire between Hamas and Israel. Further, prices may dip as US President Donald Trump announced a plan to maximize US oil and gas production by declaring a national emergency. Meanwhile, sharp fall in prices may be cushioned on weakness in dollar and rise in risk appetite in the global markets. Additionally, US President Donald trump refrained from declaring trade tariffs on China in his first day in office, as widely feared
• NYMEX Crude oil is likely to slip further towards $75 level as long as its stays below $78.0 level. MCX Crude oil Feb is likely to slip further towards Rs 6450 level as long as it stays below Rs 6750 level.
• MCX Natural gas Jan is expected to slip further towards 320 level as long as it stays below 340 level. A break below 320 level prices may slip further towards 312 level.
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