MCX Silver March is expected to slip towards Rs.246,000-Rs.243,000 level as long as it stays below Rs.265,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is likely to trade with positive bias amid weak dollar and softening of US treasury yields. Additionally, recent batch of economic data from US signaled slowdown in economic growth, reinforcing expectation for 2 rate cut this year. Further, market anticipates that foreign investors will reroute their dollar assets into precious metal after Bloomberg reported that Chinese regulators have advised financial institutions to curb holdings of U.S. Treasuries because of concerns over concentration risks. Additionally, investors will keep an eye on several key data releases, including inflation and delayed jobs report to get more clues on interest rate trajectory
• MCX Gold April is expected to rise further towards Rs.160,000-Rs.161,000 level as long as it stays above Rs.154,000 level.
• MCX Silver March is expected to slip towards Rs.246,000-Rs.243,000 level as long as it stays below Rs.265,000 level.
Base Metal Outlook
• Copper prices are expected to trade with negative bias amid risk aversion in the global markets. Further, prices may slip on signs of weak demand in China ahead of Lunar New Year holidays. Additionally, persistent rise in inventories at LME registered warehouses would hurt prices. Furthermore, Yangshan copper premium, which reflects Chinese appetite for imported copper, was at $38 a ton, still too low to indicate strong demand. Additionally, expectation of disappointing economic data from major economies would weigh on copper prices
• MCX Copper Feb is expected to slip towards Rs.1210 level as long as it stays below Rs.1260 level. A break below Rs.1210 level prices may be pushed towards Rs.1200-Rs.1190 level
• MCX Aluminum Feb is expected to slip towards Rs.308 level as long as its stays below Rs.315 level. MCX Zinc Feb is likely to face stiff resistance near Rs.327 level and slip further towards ?320 level
Energy Outlook
• NYMEX Crude oil is likely to trade with positive bias amid weak dollar and lingering geopolitical tension. Further, prices may rally as the tension between US and Iran still lingers despite of talks. Moreover, prices may rally on reports that US may consider intercepting tankers carrying Iranian crude and may deploy additional carrier to the Middle East if the negotiation fails. However, sharp upside may be capped on expectation of disappointing economic data from major countries. Furthermore, as per API figures US crude oil inventories rose by 13.4 million barrels in the week ended 6 th February.
• NYMEX Crude oil is likely to hold the support near $63 and rise further towards $65.50 level. MCX Crude oil Feb is likely to rise towards Rs.5950-Rs.6000 level as long as it stays above Rs.5650 level.
• MCX Natural gas Feb is expected to slip towards Rs.270 level as long as it stays below Rs.308 level. A break below Rs.270 level prices may fall towards Rs.260 leve
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