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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to rise back towards $1940 levels as long as it sustains above $1920 levels amid soft dollar and expectation of correction in US treasury yields. Further, prices may edged higher on rising bets that the US Federal Reserve will hold rates unchanged at its much awaited policy decision due today. As per CME Fed watch tool, the market now sees more than 99% chance that the central bank will forgo a rate hike. However, more focus will be on guidance from central banks to get clues on the future rate trajectory

• MCX Gold prices is likely to move further north towards 59,500 level as long as it trades above the support level of 59,000 levels

• MCX Silver is expected to rise further towards 73,500 level as long as it sustains above 72,300 level

Base Metal Outlook

• Copper prices are expected to trade with negative bias amid rising inventories at LME registered warehouses. Copper stocks are at their highest since May 2022. Further, prices may dip on fears that prolonged high interest rate across major countries could dampen metals demand. Additionally, China left its 1-year and 5-year Loan prime rate (LPR) unchanged matching market expectations. The 1-year LPR was kept at 3.45%, while the 5-year LPR was unchanged at 4.20%

• MCX Copper may slip further towards 720 levels as long as it trades below 732 levels

• MCX aluminium is expected to move downward towards 201.50 level as long as it stays below resistance level of 204.00 level 

Energy Outlook

• NYMEX Crude oil is expected to rise back to $91.50 levels on concerns over tighter global oil supply. Further, prices may move up on bigger than expected draw in oil stockpiles and weak US Shale output. Additionally, forecast of drawdown in weekly EIA inventory will be supportive for oil prices. However, investors are awaiting a raft of central bank monetary policies to assess the outlook for economic growth and fuel demand.

• MCX Crude oil is likely to move back towards 7700 level as long as its sustains above 7450 levels

• MCX Natural gas is expected to move upwards towards 245 level as long as it stays above 230 level

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