MCX Silver is expected to face the hurdle near 72,800 and move lower towards 71,500 - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to face the hurdle near $2025 and weaken further towards $2000 on diminishing prospects of early cut to interest rates by the Fed. Higher US treasury yields and strength in the dollar would check the upside in the bullions. Meanwhile, focus will shift towards this week’s key FOMC meeting minutes. For the day, gold is expected to move in a thin range amid bank holiday in US.
• MCX Gold April price is expected to rise towards 62,100, as long as it holds above 61,500. Only close below 61,500 it would turn weaker and slide towards 61,000.
• MCX Silver is expected to face the hurdle near 72,800 and move lower towards 71,500. Only a sustained move above 72800, would bring fresh buying interest in the metal and push the price towards 73,500.
Base Metal Outlook:
• Copper prices are expected to extend its recovery rally amid tightness in the physical market. Further, expectation of fresh round of stimulus from China after the New year holiday would support the red metal to trade on a firm note. Moreover, tight supplies due to closure of mines is likely to support the metals to hold firm.
• MCX Copper is expected to hold its ground above the 20 day EMA at 718 and rise towards 728. Only a sustained move above 728 would push the price towards 733.
• Aluminum is expected to consolidate and find support near 198 and rebound towards 201. Only close below 198, it would turn weaker towards 196.
Energy Outlook:
• NYMEX Crude oil is expected to hold its strength amid increasing supply concerns. Unrest in the Mideast is likely to support the oil prices to move towards the key resistance zone at $79-$80. Meanwhile, slower growth forecast in China and higher crude oil production in US would limit its upside. Further, uncertain demand outlook in the coming year amid higher interest rate outlook would limit any major upside in oil prices.
• MCX Crude oil March is likely to move in the range of 6380 and 6550. Only a move above 6550 it would open the doors towards 6640. On the contrary, below 6380 it would again slide towards 6250.
• MCX Natural gas is expected to remain under pressure and move towards 128, as long as it trades under 140. Higher US production and forecast of mild winter in US would check any major upside in gas prices.
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