MCX Copper March is expected to slip towards Rs.857 level as long as it stays below Rs.868 level - ICICI Direct
Bullion Outlook
* Gold is expected to trade with positive bias amid weakness in dollar. Dollar is showing weakness on fear that US economy is already showing slowdown and trade war with major trading partners will have adverse effect on economic growth, prompting US Federal Reserve to lower interest rates. Market may start anticipating earlier rate cut by US Fed if data continues to show weakness in labor market and economic instability. Additionally, demand for safe haven would go up on escalating trade tension between US and its major trading partners. Moreover, investors will keep an close eye on slew of economic data from US. Weaker than expected economic data would support gold prices to move higher.
* Spot gold is likely to hold the support near $2880 level and rise towards $2940 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 face stiff resistance near Rs.96,700 level and slip back towards Rs.95,400 level.
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid weak global market sentiments following escalating trade tension between US and its major trading partners. US 25% tariff on Canada and Mexico took effect yesterday along with doubling of duties om Chinese goods to 20%. In response China imposed additional tariffs of 10-15% on certain imports from US and Canada retaliated with 25% tariffs on C$30 billion worth of US imports while Mexico vowed to respond likewise. Further, prices may dip on concerns that tit for tat approach increases the risk of global trade war, which may have adverse effect on economic growth denting demand for industrial metal.
* MCX Copper March is expected to slip towards Rs.857 level as long as it stays below Rs.868 level. A break below Rs.857 level copper prices may slip further towards Rs.852 level
* MCX Aluminum March is expected to correct further till Rs.256 level as long as it trades below Rs.260 level. MCX Zinc March is likely to slip further towards Rs.265 level as long as it stays below Rs.270 level
Energy Outlook
* NYMEX Crude oil is expected to trade with negative bias and slip further towards $66.50 level on risk aversion in the global markets. Further, prices may slip on worries that US trade policies would trigger global trade war hurting global economic growth and oil demand. Additionally, OPEC+ is likely to proceed with a planned April output increase. Moreover, risk premium is fading as US President Donald Trump’s administration and Ukraine plan to sign a minerals deal. Furthermore, market anticipates that US may lift some sanctions on Russia which could bring more Russian oil to market. Meanwhile, all eyes will be on official government inventory report
* MCX Crude oil March is likely to face stiff resistance near Rs.6050 level and slip further towards Rs.5850 level. A break below Rs.5850 prices may dip further towards Rs.5800 level.
* MCX Natural gas March is expected to hold the support near Rs.375 level and rise back towards Rs.395 level
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