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Metal’s Outlook

Bullion Outlook

• Spot gold is expected to consolidate in the range of $2000 and $2025 ahead of today’s FOMC minutes. Further, investors will keep an eye on key comments from the Fed members to get more clarity on the timing of interest rate cut. While, demand for safe haven may rise due to the ongoing tension in the Middle east.

• MCX Gold April price is expected to face the resistance at 62,400 and weaken towards the immediate support at 61,800. Only close below 61,800 it would turn weaker and slide towards 61,400.

• MCX Silver is expected to face the hurdle near 72,200 and move lower towards 70,800. Only a sustained move below 70,800, would weaken further towards 70,400.

Base Metal Outlook

• Copper prices are expected to hold its gains and move higher amid tightness in the physical market. Further, hopes of fresh round of stimulus from China to support the struggling property sector would help the red metal to trade firm. Moreover, depleting stocks at LME registered warehouses and cut of 25 bps in 5-year lending rates by PBOC would also provide necessary support to the metal. Meanwhile, focus will remain on FOMC minutes, which may give some clues on timing of first interest rate cut.

• MCX Copper March is expected to hold the 20 day EMA at 724 and rise towards 734. Only a sustained move above 734 would push the price towards 739.

• Aluminum March future is expected to find support near 199 and move higher towards 203.50..

Energy Outlook

• NYMEX Crude oil is expected to find support near $75.50 and regain its strength towards $78.50 amid increasing supply concerns due to unrest in the Mideast. Persistent attacks on the ships in the Red sea has kindled the tensions again, which might support the oil prices to stay above the $75.50 mark. Meanwhile, uncertain demand outlook in the coming year due to higher interest rate stance and sluggish growth outlook in China would dent any major up move in price.

• MCX Crude oil March is expected to find support near 6300 and move higher towards 6520. Only a move above 6520 it would open the doors towards 6640. On the contrary, below 6300 it would slide towards 6200.

• MCX Natural gas is expected to find support near 128 and move higher towards 136. Its upside could be capped amid warm winter weather forecast.

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