IGI Logo

Metal’s Outlook

Bullion Outlook

• Spot gold is expected to hold the support of $2020 and rise towards the immediate resistance near $2045, amid softness in the dollar and decline in US treasury yields. Prices could find support on expectation of moderation in core PCE price index, which may increase the chance of interest rate cut by the Fed. Further, escalating tension in the Mideast and Ukraine would bring safe haven buying in to the bullions. Meanwhile, comments from the Fed members would also be eyed after the key inflation numbers.

• MCX Gold April price is expected to consolidate in the band of 62,000 and 62,500. Only a move above 62,500 it would rise towards 62,900. On the flip side a move below 62,000 it would slide towards 61,500.

• MCX Silver May hold strong support near 70,200, if holds then it would rebound towards 71,500.

Base Metal Outlook

• Copper prices are expected to remain in a tight range as subdued demand from China is likely to check its upside. Meanwhile, expectation of fresh round of stimulus from the top metal consumer China and depleting LME inventories could provide some support to the red metal. Meanwhile, focus will remain on key US inflation data which could bring more clarity on the timing of first rate cut.

• MCX Copper March is expected to move in the band of 723 and 730. Only close below 723 it would turn weaker

• Aluminum March future is expected to trade weaker as sluggish growth and lower demand from the auto industries in China would weigh on the metal price. MCX Aluminum March is expected to dip towards 196, as long as it trades below 201.

Energy Outlook

• NYMEX Crude oil is expected to trade higher and move towards $79.50 amid strong physical demand. Increasing bets production cuts by the OPEC+ members beyond the first quarter would help the oil prices to trade firm. Again supply disruption due to unrest in the Mideast and tension in the Red Sea would also support the oil prices to stay above the $77 mark. Meanwhile, higher interest rate outlook by the Fed could limit its upside. Investors will keep an eye on today’s PCE price index to get further clarity.

• MCX Crude oil March is expected to hold the support near 6380 and move towards 6600. Above 6600 it would extend its rally towards 6720.

• MCX Natural gas March futures is expected to find support near 150 and move higher towards 162. Only below 150 it would turn weaker.

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631