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Metal’s Outlook

Bullion Outlook

* Spot gold is expected to hold the support of $2066 and rise towards $2090, amid softness in the dollar and decline in US treasury yields. Last week’s weaker than expected economic numbers from US and safe haven appeal for the metal would provide enough support to the bullions to hold firm. The CME Fed-Watch tool indicates more than 52% probability of 25 bps rate cut in June and May rate cut bets inched upwards to 25%. Meanwhile, investors will eye on more economic numbers this week to get more clarity on the timing of first interest rate cut.

* MCX Gold April price is expected to hold the support near 63100 and extend its rally towards 63900.

* MCX Silver May is likely to rise towards 73200, as long as it holds above the key support of 71,600.

MCX Gold vs. Silver

Base Metal Outlook

* Copper prices are expected to move higher amid softness in the dollar and hopes of fresh round of stimulus from China to support its struggling housing sector. Investors will keep an eye on annual parliamentary meeting from China. Further, investors will remain cautious ahead of economic numbers from US to ger further clarity on interest rate path.

* MCX Copper March is expected to move in the band of 723 and 730. Only close above 730, it would move higher towards 735

* Aluminum March future is expected to hold the support near 199 and extend its rebound towards 203. Above 203 it would rise towards 205.

MCX Copper vs. Aluminium

Energy Outlook

* NYMEX Crude oil is expected to hold the support at $79 and move higher towards $82 as OPEC+ members led by Saudi Arabia and Russia agreed to extend its voluntary production cuts of 2.2 Mbpd into the second quarter. Further, rising geopolitical tension in the Mideast and Houthi attacks on Red Sea shipping despite concerns on economic growth would support the oil prices to stay higher. NYMEX crude has breached the key resistance level at $80, if it sustains above then it would extend its rally towards $82.

* MCX Crude oil March is expected to rise towards 6750, as long as it holds above 6520.

* MCX Natural gas March futures is expected to hold the support near 150 and move higher towards 160. Only below 150 it would turn weaker. 

MCX Crude Oil vs. Natural Gas

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