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Bullion Outlook:

Spot gold is likely to rise further till $2070 level as long as it sustainsabove $2035 level amid expectation of correction in dollar and declinein US treasury yields. Dollar and yields may continue to move south asrecent producer price index data showed that inflation would continueto subside, giving room for Fed to start cutting rate this year as earlyas March. As per CME Fedwatch tool traders are pricing in 75% chancefor the 25bps rate cut in March, with several more rate cuts in the year.Additionally, demand for safe haven may increase on rising tension inMiddle East.

• MCX Gold prices is likely to move north towards 62,800 level as longas it trades above the support level of 62,100 levels

• MCX Silver is expected to follow gold and rise back towards 73,500level as long as it sustains above 71,900 level

Base Metal Outlook

Copper prices are expected to trade with positive bias amidexpectation of correction in Dollar and improved global marketsentiments. Further, prices may move north on expectations thatChina’s central bank will ramp up liquidity as authorities try to shoreup economic growth. Moreover, China’s trade balance data grewmore than expected in December, aided by an outsized rise in exports.Additionally, improved imports indicated that local demand waspicking up marginally after remaining weak for most of 2023

• MCX Copper is expected to rise back towards 718 level as long as itstays above 710 level. A move above 718 would open the doorstowards 722 levels.

• Aluminum is expected to hold the support near 200.50 level and risetowards 202.50 levels

Energy Outlook

NYMEX Crude oil is expected to rise further towards $74 as long as it stays above $71 level amid weak dollar and fear over escalating tension in Middle after US and UK launched air and sea strikes against Houthi in Yemen. Additionally, softer U.S producer price inflation boosted bets that the Fed might start cutting interest rates as early as March. Meanwhile, investors will remain cautious ahead of major economic data from US and China this week to get more clues on potential path of demand.

• MCX Crude oil is likely to rise further towards 6150 levels as long as it trades above 5900 levels.

• MCX Natural gas is expected to rise further towards 280 level as long as it trades above 255 level as extreme cold weather will boost gas demand while also cutting gas supplies by freezing wells

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