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Metal’s Outlook

Bullion Outlook

• Spot gold is expected to rise towards the immediate resistance near $2045, as long as it holds above $2020 amid softness in the dollar and decline in US treasury yields. Further, safe haven buying due to the unrest in Mideast and Ukraine would also provide support to the bullions. Now focus will remain on key US core PCE price index and GDP numbers which might give more clarity on future interest rate path.

• MCX Gold April price is expected to consolidate in the band of 62,000 and 62,500. Only a move outside of the range would bring further clarity in its direction.

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

Base Metal Outlook

• Copper prices are expected to find support and move higher on expectation of fresh round of stimulus from the top metal consumer China. Further, depleting LME inventories could also provide some support to the red metal. Meanwhile, forecast of contraction in the manufacturing activity in China for the third month in a row would check its upside. Meanwhile, investor will eye on key economic numbers from US to get more clarity on the timing of interest 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 hold the support near 197 and rebound towards 201. Only close below 197 it would slip towards 195.

Energy Outlook

• NYMEX Crude oil is expected to hold the support near $77 and move higher towards $79.50 amid strong physical demand. Further, expectation of extension in production cuts by the OPEC+ to next quarter would also support it to trade higher. Moreover, 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, investors will eye on weekly EIA inventory data to get further clarity.

• MCX Crude oil March is expected to hold the support near 6380 and move towards 6550. Above 6550 it would extend its rally towards 6620.

• MCX Natural gas March futures is expected to find support near 145 and move higher towards 155 on the prospects of production cut by major producers in US.

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