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Metal’s Outlook:

Bullion Outlook:

• Spot gold is likely to hold the support near $2015 level and rise towards $2045 level amid expectation of further correction in dollar and decline in US treasury yields. Dollar and Yields may move south further as investors will brace for the FOMC rate decision and statement scheduled on Wednesday and U.S non farm payrolls data on Friday. US Fed is highly anticipated to keep rates unchanged but may provide some cues on timing of rate cuts. Additionally, demand for safe haven may increase on escalating tension in Middle East

• MCX Gold April prices is likely to hold the support near 62,000 level and rise towards 62,650 levels

• MCX Silver is expected to follow gold and rise further towards 73,000 level as long as it sustains above 71,700 level.

Base Metal Outlook:

• Copper prices are expected to trade with negative bias amid worries about China’s economic growth and as ailing property sector sparked demand worries. The deepening real estate crisis is a blow to investor confidence. Further, investors fear that higher borrowing cost for longer duration will hurt global economic growth and dent demand for industrial metal. Meanwhile, decline in stockpiles at LME registered warehouses, weakness in dollar and rise in risk appetite in the global markets may prevent sharp downside in prices.

• MCX Copper is expected to slip towards 725 level as long as it stays below 733 level. A move above 733 would reverse the trend and open the doors for 736 levels.

• Aluminum is expected to rise further towards 206 level as long as it stays above 202.50 level.

Energy Outlook:

• NYMEX Crude oil is expected to face the hurdle near $78.30 and slip towards $75.50 level on concern over Chinese economic growth. China's ailing property sector sparked demand worries. However, sharp downside may be cushioned on escalating tension in Middle east and soft dollar. US Fed is widely expected to keep interest rates unchanged in upcoming meeting, but officials could provide indications that the fight against inflation has proceeded adequately to begin cutting rates sooner rather than later.

• MCX Crude oil is likely to slip further towards 6250 levels as long as it trades below 6500 levels.

• MCX Natural gas is expected to slip further towards 168 level as long as it trades below 178 level on the outlook for above normal U.S temperatures. Additionally, extended outage at an LNG export terminal in Texas threatens to limit US gas exports and boost domestic supplies.

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