MCX Copper March is expected to rise further towards Rs.885 level as long as it stays above Rs.870 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Gold is expected to continue with its upward trend and rally Further towards $2935 level on weakness in dollar and safe haven buying. Dollar is showing weakness as recent batch of economic data from US signaled slowdown in economic growth and trade war with major trading partners will have adverse effect on economy, prompting US Federal Reserve to lower interest rates. Market expects more rate cuts this year than previously thought due signs of slowing economy. Traders are pricing in 69 bps of cuts by the Fed this year. Moreover, investors will keep an close eye on slew of economic data from US and ECB monetary policy where central bank is likely to cut interest rates.
* Spot gold is likely to hold the support near $2890 level and rise towards $2935 level. MCX Gold April is expected to rise towards Rs.86,400 level as long as it stays above Rs.85,300 level.
* MCX Silver May is expected to rise further towards Rs.98,200 level as long as it stays above Rs.96,500 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias on weak dollar and on hopes of more stimulus packages from China to revive economic growth and achieve its GDP growth target for 2025 set around 5%. Moreover, China raised its budget deficit target to around 4% of GDP from 3% last year. Higher debt and spending figures aim to cushion the impact of tariffs. Additionally, US President Donald Trump said red metal could attract a tariff of 25%. Meanwhile, investors will keep an close eye on economic data from US to gauge economic health of the country and get cues on interest rate trajectory.
* MCX Copper March is expected to rise further towards Rs.885 level as long as it stays above Rs.870 level. A break above Rs.885 level copper prices may rally further towards Rs.890 level
* MCX Aluminum March is expected to rise further till Rs.263 level as long as it trades above Rs.259 level. MCX Zinc March is likely to rise further towards Rs.274 level as long as it stays above Rs.268 level
Energy Outlook
* NYMEX Crude oil is expected to trade with negative bias and slip further towards $65.00 level on larger than expected build in US crude oil inventories, signaling weak demand. Further, OPEC+ decided to increase oil output for the first time since 2022. The group will make a small increase of 138,000 barrels per day from April. Moreover, investors fear that escalating trade tension between US and its major trading partners will ignite global trade war hurting economic growth and denting fuel demand. Moreover, possible peace talk between Russia and Ukraine would lead to reduction in sanctions on Russia adding more oil into the market.
* MCX Crude oil March is likely to face stiff resistance near Rs.5950 level and slip further towards Rs.5650 level. A break below Rs.5650 prices may dip further towards Rs.5600 level.
* MCX Natural gas March is expected to hold the support near Rs.365 level and rise back towards Rs.395 level
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