MCX Gold April is expected to rise further towards Rs157,000-Rs158,000 level as long as it stays above Rs152,000 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, investors will keep an close eye on highly anticipated jobs report next week to get more cues on interest rate trajectory. Moreover, strong central bank demand for gold is supportive of prices. Additionally, demand for safe haven may remain elevated amid geopolitical tension in Middle East and Eastern Europe, political uncertainty and bulging US Deficit. Meanwhile, sharp upside may be capped as CME group again raised margin requirements for gold and silver futures contracts. Both initial and maintenance margins for COMEX 100 Gold Futures have been increased to 9% from 8% and for COMEX 5000 Silver Futures have been hiked to 18% from 15%
* MCX Gold April is expected to rise further towards Rs157,000-Rs158,000 level as long as it stays above Rs152,000 level.
* MCX Silver March is expected to rise towards Rs 260,000-Rs 265,000 level as long as it stays above Rs 230,000 level.
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid 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 $37 a ton, compared with above $40 entering January. Additionally, expectation of unsatisfactory economic data from major economies would weigh on copper prices. Moreover, on supply side Canadian mining giant Capstone Copper stated that the largest union at its Mantoverde copper-gold mine in Chile had approved a new 3-year labor contract, ending the strike, paving way for normal production
* MCX Copper Feb is expected to slip towards Rs1210 level as long as it stays below Rs1265 level.
* MCX Aluminum Feb is expected to rise towards Rs318 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 negative bias as concerns over supply disruption eased after US and Iran finished a round of talks in Oman. Iran’s top diplomat said that nuclear talks with the U.S. were off to a “good start” and set to continue. Further, expectation of disappointing economic data from major countries will hurt demand outlook. Meanwhile, sharp downside would be cushioned on weak dollar and optimistic global market sentiments
* NYMEX crude oil prices likely to slip further towards $62.0 level as long as it stays below $64.50. MCX Crude oil Feb is likely to slip towards Rs 5680-Rs 5600 level as long as it stays below Rs 5940 level.
* MCX Natural gas Feb is expected to slip towards Rs 285 level as long as it stays below Rs 330 level. A break above Rs 285 level prices may slide further towards Rs 270 level
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