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Metal’s Outlook

Bullion Outlook

• Spot gold is expected to hold the support of $2030 and rise towards $2060, amid softness in the dollar. The dollar could trim its gains on expectation of contraction in the manufacturing PMI numbers. Further moderation in PCE price index, would keep the hopes of rate cut in June alive. Moreover, escalating tension in the Mideast and Ukraine would bring safe haven buying in to the bullions. The CME Fed-Watch tool indicates more than 52% probability of 25 bps rate cut in June . Meanwhile, comments from the Fed members would also be eyed.

• MCX Gold April price is expected to hold the support near 62100 and extend its rally towards 62900.

• MCX Silver May is likely to rise towards 72100, as long as it holds above the key support of 70,200.

Base Metal Outlook

• Copper prices are expected to remain in a tight range ahead of the next weeks annual parliamentary meeting from China. Meanwhile, contraction in the manufacturing activity in US and Europe would limit its upside. Whereas, expectation of fresh round of stimulus from the top metal consumer China and depleting LME inventories could provide some support to the red metal.

• MCX Copper March is expected to move in the band of 723 and 730. Only close below 723 it would turn weaker towards 719.

• Aluminum March future is expected to trade in the band of 198-202. Only a move above 202 would open the doors towards 204.50.

Energy Outlook

• NYMEX Crude oil is expected to face the hurdle near $79.50 and dip towards the $77 mark on expectation of weaker economic numbers from US. Further, sluggish growth in China and higher interest rate outlook by the Fed could hurt prices. On the other hand, expectation of further extension to the current supply agreement by OPEC+ in its next meeting would limit the downside in oil prices.

• MCX Crude oil March is expected to face the hurdle near 6600 and move lower towards 6450. Below 6450, 6350 holds key support.

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

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