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Metal’s Outlook

Bullion Outlook

* Spot gold is expected to remain under pressure amid strong dollar and higher US treasury yields. Hawkish comments from the Fed chair amid strong growth numbers and projection of sticky inflation numbers would support the dollar to trade firm and restrict any major up move in the bullions. Further, expectation of better GDP in last quarter and drop in weekly jobless claims numbers would also weigh on the bullions.

* Spot gold is likely to face the hurdle near $2630 and move towards $2580. Formation of a bearish engulfing pattern and breakdown of 50 and 20 DEMA indicates correction in price. MCX Gold February is expected to move lower towards 75,200 as long as it trades under 77,000. A move below 75,200 it would sip towards 74,600.

* MCX Silver March is expected to face the hurdle near 89,200 and slide towards 86,800. A move below 86,800 would open the doors towards 85,000.

Base Metal Outlook

* Copper prices are expected to remain under pressure amid strong dollar and demand uncertainty. Further, sluggish demand growth from China and lack of details from China regarding its pledges of proactive stimulus measures could depress prices and dampen demand outlook. Meanwhile, supply disruption from Zambia’s Mopin copper mine till February 2025 could provide some support to the metal.

* MCX Copper December is expected to face the hurdle near 812 and move lower towards 800. Breakdown of the rising channel and bearish cross over 10 and 20 DEMA indicates weakness in price.

* Aluminum is expected to move lower towards 240, as long as it trades under 244.50. MCX Zinc is expected to dip towards 278, as long as it trades under the 10 day EMA at 285.50

Energy Outlook

* NYMEX Crude oil is expected to face the hurdle near $71 and move lower towards $69 amid strong dollar and demand concerns from China. Slower pace of interest rate cuts in 2025 by US federal Reserve would impact the fuel demand. Meanwhile, expectation of strong GDP numbers and steady job market would improve demand outlook and limit its downside. Further, geopolitical tensions and sanctions on Russian oil could limit its losses.

* On the data front, closer of OI in ATM and OTM strike call indicates prices to move higher. Further, addition of OI in ATM and OTM put strikes indicates strong support near $69. MCX Crude oil January is likely to dip towards 5880 mark , as long as it trades under 6050. Only close below 5880 it would turn weaker.

* MCX Natural gas December future is expected to hold the support near 10 day EMA at 277 and rebound towards 300. A move above 300 would open the doors towards 305. Forecast of colder weather in US would provide support to price.

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