MCX Gold prices is likely to face hurdle near 62,300 level and slip towards 61,600 levels - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to face hurdle near $2032 level and move back towards $2010 level amid strong dollar and rise in US treasury yields. Improved economic numbers from US showed resilience in the economy, diminishing expectations for imminent rate cuts from US Federal Reserve. The CME Fed-watch tool indicates below 42% probability of rate cut in March against last weeks reading of 76.9%. Meanwhile, demand for safe haven may continue to rise on escalating tension in Middle East
• MCX Gold prices is likely to face hurdle near 62,300 level and slip towards 61,600 levels
• MCX Silver is expected to follow gold and slip back towards 70,200 level as long as it sustains below 71,500 level.
Base Metal Outlook:
• Copper prices are expected to trade with negative bias amid strong dollar, diminishing hopes of more stimulus from the Chinese officials to support the economy. Further, investors fear that higher borrowing cost for longer duration will hurt global economic growth and dent demand for industrial metal. Meanwhile, depleting stocks in LME and tight supply could lent some support to the metal.
• MCX Copper is expected to slip towards 710 level as long as it stays below 719 level. A move above 719 would reverse the trend and open the doors for 723 levels.
• Aluminum is expected to slip further towards 194 level amid record production from China.
Energy Outlook:
• NYMEX Crude oil is expected to hold the support near $73 and rise towards $76 level amid fears of reduced Russian crude exports. Further, investors fear over escalating tension in Middle East after Yemeni Houthi asserted to keep attacking ships in Red Sea. However, sharp upside may be capped on strong dollar, amid growing doubts that major central banks will cut interest rates in first quarter of 2024.
• MCX Crude oil Feb is likely to rise further towards 6350 levels as long as it trades above 6140 levels. Only a move above 6350, it would open the doors towards 6450.
• NYMEX Natural gas is expected to remain under pressure amid forecast of warmer than normal weather in US. Further, higher production in the region could also weigh on the prices. MCX Natural gas is likely to face the hurdle near 210 and move lower towards 196 level.
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