MCX Gold April is expected to rise further towards Rs.160,000-Rs.161,000 level as long as it stays above Rs.154,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is likely to trade with positive bias amid weak dollar and softening of US treasury yields. Further, market anticipates that foreign investors will reroute their dollar assets into precious metal after Bloomberg reported that Chinese regulators have advised financial institutions to curb holdings of U.S. Treasuries because of concerns over concentration risks. Moreover, White House economic adviser Kevin Hassett comment on job market may impact Fed’s policy decision. Markets are currently pricing in roughly 50 basis points of interest rate cuts from the Federal Reserve this year. Additionally, investors will keep an eye on several key data releases, including retail sales, inflation and delayed jobs report
*MCX Gold April is expected to rise further towards Rs.160,000-Rs.161,000 level as long as it stays above Rs.154,000 level.
*MCX Silver March is expected to slip towards Rs.250,000-Rs.247,000 level as long as it stays below Rs.268,000 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias amid weak dollar and rise in risk appetite in the global markets. Meanwhile, sharp upside may be capped on rising inventories and weak demand from China. Inventories rose at major trading hubs in Shanghai, London, and New York, signaling weak demand. Furthermore, Yangshan copper premium, which reflects Chinese appetite for imported copper, was at $38 a ton, still too low to indicate strong demand. Additionally, expectation of unsatisfactory economic data from major economies would weigh on copper prices.
*MCX Copper Feb is expected to rise towards Rs.1265 level as long as it stays above Rs.1225 level.
* MCX Aluminum Feb is expected to rise towards Rs.318 level as long as its stays above Rs.308 level. MCX Zinc Feb is likely to face stiff resistance near Rs.328 level and slip further towards Rs.320 level
Energy Outlook
* NYMEX Crude oil is likely to trade with positive bias amid weak dollar and rise in risk appetite in the global markets. Further, prices may rally as the tension between US and Iran still lingers despite of talks. U.S. Department of Transportation issued an advisory to U.S.-flagged vessels to stay as far as possible from Iranian territory while passing through the Strait of Hormuz and Gulf of Oman. However, expectation of disappointing economic data from major countries will hurt demand outlook.
*NYMEX crude oil prices likely to rise further towards $65.50 level as long as it stays above $63. MCX Crude oil Feb is likely to rise towards Rs.6000-Rs.6050 level as long as it stays above Rs.5700 level.
*MCX Natural gas Feb is expected to slip towards Rs.270 level as long as it stays below Rs.315 level. A break below Rs.270 level prices may slide further towards Rs.260 level
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