MCX Gold prices is likely to hold the support near 61,200 level and rise back towards 61,800 levels - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to find the support near $1995 level and re-bounce back to $2025 level amid expectation of correction in Dollar and US treasury yields ahead of housing and job data. US Jobless claims data is likely to show that more number of people filled for unemployment benefits, signaling cooling labor market. Additionally, market is still pricing in a likely 150 basis points of cuts by the end of the year. Moreover, demand for safe haven may continue to rise on mounting tension in Middle East
• MCX Gold prices is likely to hold the support near 61,200 level and rise back towards 61,800 levels
• MCX Silver is expected to follow gold and rise back towards 72,000 level as long as it sustains above 71,000 level.
Base Metal Outlook:
• Copper prices are expected to trade with negative bias amid risk off tone across markets and worries about China’s economic growth. Recent data from China showed retail sales grew at the slowest pace since September and investment growth remained tepid, though industrial output showed signs of improvement. Further, policymakers from major central banks pushed back against market expectations of imminent interest rate cuts. Meanwhile, sharp downside may be cushioned on persistent decline in stockpiles at LME registered warehouses and expectation of correction in dollar
• MCX Copper is expected to slip towards 708 level as long as it stays below 719 level. A move above 719 would reverse the trend and open the doors for 722 levels.
• Aluminum is expected to slip further towards 197.50 level as long as it stays below 199.50 level.
Energy Outlook:
• NYMEX Crude oil is expected to face hurdle near $74 and slip back towards $71 level amid weak global market sentiments and surprise increase in US crude oil stockpiles, signs of weaker demand. As per API crude inventories rose by 939,000 barrels for the week ending 12th January 2024. Data also showed gasoline inventories increased by 2.5M barrels last week, while distillate stocks increased by 600,000 barrels. Further, policymaker from major central banks signaled that interest rates would remain higher for longer duration compared to expectations. Meanwhile, investors will remain cautious ahead of official government inventory report
• MCX Crude oil Feb is likely to slip further towards 5850 levels as long as it trades below 6150 levels.
• MCX Natural gas is expected to slip further towards 230 level as long as it trades below 243 level
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