MCX Natural gas December futures is expected to face the hurdle near 242 and move lower towards 230 - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Gold is likely to rise again towards $2070, as long as it holds above the $2030 mark. The expectation of softness in the US PCE price index data could raise the bets that the Federal Reserve would halt its rate hike regime and even go after the rate cuts in the first half of 2024. As per the CME Fed-Watch toll probability of rate cut in March has moved up to 48%, from previous day’s reading of 34%. Further, expectation of weaker economic numbers would also support the bullions to trade higher.
* MCX gold February is expected to move higher towards 63,000, as long as it holds above 62,400. Only close below 62,400 it would correct towards 62,000.
* MCX Silver is likely to hold its gains above 76500 and rise towards 78,200. Only close below 76500 it would correct towards 75,800 mark.
Base Metal Outlook
* Copper prices are expected to weaken further amid weakness in the manufacturing activity in the top metal consumer China. Contraction in the manufacturing activity in China would again raise the demand concerns and weigh on the metals. The Chinese manufacturing PMI remained below the 50 mark for the second month in a row Meanwhile, sharp downside in the metals could be limited amid prospects of fresh round of stimulus from China.
* MCX Copper December is likely to face the hurdle near 724 and move south towards 715.
* MCX Aluminium December is expected to weaken towards 201, as long as it trades below 204.
Energy Outlook
* NYMEX Crude oil prices are expected to find support near $76 and move higher towards the $78.80 amid growing speculation of additional output cuts from OPEC. Saudi Arabia has been urging other members to reduce production quotas to stabilize markets. Further, increasing prospects of easing monetary policy from the Federal Reserve would also support the oil prices to trade higher. Meanwhile, key focus will remain on the outcome of today’s OPEC+ decision on the production quota.
* MCX Crude oil is likely to find support near 6330 and move towards 6550. Only a move above 6550 would open the doors towards 6650.
* MCX Natural gas December futures is expected to face the hurdle near 242 and move lower towards 230 amid mild weather forecast and higher buildup in inventory levels.
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