MCX gold is expected to face theres is tance of 10day EMA at 62140 - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Gold is expected to face the hurdle near $2020 and weaken towards $1990 amid strong dollar and rise in US treasury yields. Further, declining probability of rate cut in the first half of 2023 would also limit the upside in bullions. As per the CME Fed-Watch toll probability of rate cut in March has dipped to 44% against 55% after the strong US jobs report. Meanwhile, focus will shift towards the this weeks key FOMC meeting, where the Fed is likely to hold the rates steady.
* MCX gold is expected to face the resistance of 10 day EMA at 62140 and weaken towards the immediate support at 61500. Only close below 61,500 would open the doors towards 61,100.
* MCX silver is likely to weaken further towards 72,000, as long as it trades under the key 200 day EMA 73200. Below 72,000 it would weaken further towards 71400.
Base Metal Outlook
* Copper prices are likely to trim its earlier gains and remain under pressure amid growing concerns of deflation in the Chinese economy. Persistent weakness in the China factory gates numbers indicates weakness in the demand. Further, stronger dollar would also hurt the red metal. Meanwhile, increasing bets of more stimulus from, China would limit the downside in the metal.
* MCX Copper December is expected to face the resistance near 725 and weaken towards 717. Only a move below 717, would weaken the metal further towards 713.
* MCX Aluminium is expected to move in the range of 193-198. Only close below 193 it would weaken further towards 191.
Energy Outlook
Energy Outlook
* NYMEX Crude oil prices are expected to extend its rebound towards $73, as long as it holds above the $69 mark. The purchase of oil by US to replenish the strategic would provide some support to the oil prices. Further, expectation of more stimulus from China to enhance the economic recovery in the coming year would also help the NYMEX crude to extend its gains towards $73. Meanwhile, investors will keep an eye on key US inflation numbers and the Fed interest rate decision, which may bring more clarity in the price direction.
* MCX Crude oil is likely to hold the support near 5850 and rebound towards key resistance near 6050. Only a move above 6050, it would rise towards 6200.
* MCX Natural gas December future is expected weaken further towards 204, as long as it remains under 218.
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