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Metal’s Outlook:

Bullion Outlook:

• Spot gold is likely to face hurdle near $2038 level and move back towards $2018 level amid strong dollar and rise in US treasury yields. Improved economic numbers from US is likely to check the upside in the bullions. Further, diminishing prospects of imminent rate cuts in March would also weigh the bullions to move towards south. The CME Fed-watch tool indicates below 41% probability of rate cut in March against yesterday’s reading of 46.2%. Meanwhile, demand for safe haven may continue to rise on escalating tension in Middle East

• MCX Gold prices is likely to face hurdle near 62,350 level and slip towards 61,800 levels

• MCX Silver is expected to follow gold and slip back towards 70,400 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 and sluggish growth outlook in China. Further, expectation of weaker manufacturing activity in US and Europe would also weigh on the demand outlook of the metal. Meanwhile, depleting stocks in LME and tight supply could lent some support to the metal. Additionally, any new measures from China to support the economy could support the red metal to regain its strength

• MCX Copper February is expected to move in the range of 719 to 727. Only a move above 727 it would rally towards 733.

• Aluminum is expected to trade higher towards 205, as long as it holds above the 200 mark.

Energy Outlook:

• NYMEX Crude oil is expected to move in a tight range amid weak demand and ongoing supply risk. It is likely to find support near $73 and on the upside $76 would act as major resistance. Meanwhile, drop in crude oil inventory by 6.674M barrels last week (API Data) would support the oil prices to hold above the $73 mark. 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 consolidate in between 6100-6300. Only a move above 6300, it would open the doors towards 6450.

• NYMEX Natural gas is expected to recover some of its losses amid slower than expected outputs and increasing gas flows to the LNG export plants in US. MCX Natural gas is likely to find support near 176 and move higher towards 184.

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