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Metal’s Outlook:

Bullion Outlook:

• Spot gold is likely to find support near $2000 level and move back towards $2035 level amid softness in the dollar. Dollar and yields may move lower on projection of disappointing GDP data, cementing expectations that US Fed is done with raising interest rates and it could go for first cut in March 2024. The Q4 2023 advance estimates are expected to dip towards 2.0% against previous reading of 4.9%. Further, Meanwhile, investors will keep an eye on key policy decisions from ECB to get more clarity on future rate path.

• MCX Gold prices is likely to find support near 61,800 and move higher towards 62,350 level. Only close below 61,800 it would weaken towards 61,500 levels

• MCX Silver is expected to follow gold and rise back towards 72,500 level as long as it sustains above 71,000 level

Base Metal Outlook:

• Copper prices are expected to hold its gains and trade with positive bias amid softness in the dollar and support from fresh stimulus measures by the Chinese government. Further, improved manufacturing activity in US and Europe and expectation of better new house sales number in US would support the metal to trade higher. However, focus will remain on ECB monetary policy and US advance GDP numbers.

• MCX Copper February is expected to find support near 726 and move higher towards 735. Only a move above 735 it would rally towards 740.

• Aluminum is expected to trade higher towards 205, as long as it holds above the 201 mark.

Energy Outlook:

• NYMEX Crude oil is expected to move higher towards $77 amid slump in US crude oil output and ongoing tension in the Middle east. US crude oil output fell to a five month low of 12.3bpd last week. Further, expectation of more stimulus measures from China to support its economy would push the oil prices higher. Meanwhile, focus will shift towards key economic numbers from US and ECB monetary policy.

• MCX Crude oil Feb is likely to find support near 6200 and move higher towards 6400. Only a move above 6400, it would open the doors towards 6500.

• NYMEX Natural gas is expected to extend its rebound on expectation of large drawdown in weekly EIA gas inventories. Nat-gas inventories are expected to fall -322 bcf, the third-largest recorded draw ever. MCX Natural Gas February future is expected to rise towards 196, as long as holds above 182.

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