MCX Gold Feb is expected to rise towards Rs.142,500 level as long as it stays above Rs.140,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
* Spot Gold is likely to trade with the positive bias and rise further towards $4650 level on weak dollar and softening of US treasury yields. Further, demand for safe haven may increase as geopolitical tensions remained elevated due to unrest in Iran, escalation in fighting between Russia and Ukraine and US renewed signals over taking control of Greenland after capture of Venezuela's President Nicolas Maduro. Moreover, prices may rally on concerns over Fed independence. Additionally, Fed is expected to hold rates steady at its January meeting but market is pricing 2 more rate cuts this year. Further, uncertainty over tariffs persist as Supreme Court deferred on the legality of President Trump’s tariffs.
* MCX Gold Feb is expected to rise towards Rs.142,500 level as long as it stays above Rs.140,000 level.
* MCX Silver March is expected to rise towards Rs.272,000 level as long as it stays above Rs.260,000 level
Base Metal Outlook
* Copper prices are expected to trade with a positive bias amid weak dollar, optimistic global market sentiments and decline in inventories at LME registered warehouses. Further, prices may rally on supply concerns as major South American miners continues to face disruption from natural disasters & strikes and tight refined copper availability outside U.S. amid tariff uncertainties. Moreover, prices may move up on expectation 2 more rate cut this year from US Fed and anticipations for further policy easing in top consumer China. Meanwhile, ongoing weakness in China’s construction sector could pose headwind for copper prices
* MCX Copper Jan is expected to rise towards Rs.1325 level as long as it stays above Rs.1290 level. On contrary a break below Rs.1290 level may open doors for Rs.1280-Rs.1270 level
* MCX Aluminum Jan is expected to slip towards Rs.310 level as long as it stays below Rs.321 level. MCX Zinc Jan is likely to face stiff resistance near Rs.315 level and slip towards Rs.309 level
Energy Outlook
* NYMEX Crude oil is likely to trade with positive bias and rise towards $60.50 level on supply concerns and weak dollar. Investors fear that intensifying protest in Iran could disrupt supply. U.S. President Donald Trump threatened possible military action over lethal violence against protesters. Wider conflict with Iran may put oil shipment from Strait of Hormuz at risk. Additionally, investors are worried over supply disruption due to attacks on energy facilities in Russia. Moreover, prices may rally ahead of upcoming annual rebalancing of commodity indexes. Furthermore, prices may move up on expectation 2 more rate cut this year from US Fed and anticipations for further policy easing in top consumer China
* MCX Crude oil Feb is likely to rise further towards Rs.5450-Rs.5500 level as long as it stays above Rs.5200 level.
* MCX Natural gas Jan is expected to recover towards Rs.325 level as long as it stays above Rs.290 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
