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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to slip further towards $2010 level as long as it stays under $2045 level amid strong dollar and rise in US treasury yields. Yields are moving up as hawkish statements from Fed officials dampened expectations for a March rate cut. Meanwhile, sharp downside may be cushioned on projections of disappointing economic data from US. Additionally, demand for safe haven may increase on mounting tension in Middle East as US military carried out a new strike in Yemen and Iran targeted semi-autonomous Kurdistan region of Iraq

• MCX Gold prices is likely to move south towards 61,700 level as long as it trades below the resistance level of 62,300 levels

• MCX Silver is expected to follow gold and slip back towards 71,400 level as long as it sustains below 72,500 level.

Base Metal Outlook:

• Copper prices are expected to trade with negative bias amid strong dollar and risk aversion in the global markets. Further, US Fed and ECB policymakers pushed back against market expectations of imminent interest rate cuts. Meanwhile, sharp fall in industrial metal may be cushioned on hopes for more stimulus in top metal consumer China. Additionally, Chinese data showed industrial production increased by 6.8% in December 2023 and economy expanded by 5.2% in Q4 CY23 compared to 4.9% in preceding quarter

• MCX Copper is expected to slip towards 710 level as long as it stays below 717.50 level. A move above 717.50 would reverse the trend and open the doors for 721 levels

• Aluminum is expected to rise further towards 202.50 level as long as it stays above 199.50 level.

Energy Outlook:

• NYMEX Crude oil is expected to slip further towards $70.5 as long as it stays below $73 level on strong dollar and weak global market sentiments. Further, US Fed and ECB policymaker signaled that interest rates would remain higher for longer duration compared to expectations. Investors fear that higher borrowing cost for longer period will hamper economic outlook and hurt demand for crude oil. Meanwhile, sharp fall may be cushioned on signs of escalating tensions in the Middle East

• MCX Crude oil Feb is likely to slip further towards 5880 levels as long as it trades below 6150 levels.

• MCX Natural gas is expected to slip further towards 238 level as long as it trades below 251 level

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