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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to face the hurdle near $2045 level and slip towards $2020 level as recent hawkish comments from the Fed members and strong US economic numbers has pushed back the expectation of interest rates cuts from March to May. Additionally, liquidation of gold holdings by ETFs would weigh on the metal prices. Meanwhile, investors will keep an eye on comments from other Fed officials to gauge the future interest rate path.

• MCX Gold April price is likely to face hurdle near 62,800 level and slip towards 62,100 levels

• MCX Silver is expected to follow gold and slid further towards 70,000 level as long as it sustains below 71,200 level. Only a move above 71200 it would bring back the bulls into the action.

Base Metal Outlook

• Copper prices are expected to trim its earlier losses and move back north amid lower LME inventories and supportive measures from China to stabilize the markets. Meanwhile sluggish growth outlook in the top consumer China and contraction in the manufacturing activity in major economies would restrict any major upside in the metal.

• MCX Copper is expected to remain in the range of 712-721 amid mixed set of cues. Only close above 721 it would rise towards 725. On the contrary below 712 it would slip towards 708.

• Aluminum is expected to hold the support at 199 and move higher towards 203.

Energy Outlook

• NYMEX Crude oil is expected to rise towards $75 amid ongoing geopolitical tension in the Middle East and Russia. Further, less than expected rise in crude oil inventories ( API Data) would also help the prices to move towards $75. Furthermore, expectation of decline in US crude oil production from the record production in 2024 would also support its gains. Meanwhile, increasing possibility of an truce deal between Israel and Hamas would limit the upside in oil prices.

• MCX Crude oil is likely to move towards 6200, as long as it holds above the 5950 levels. Only close above 6200 would push the price further towards 6300 levels.

• MCX Natural gas is expected to slip further towards 165 level as long as it trades below 176 level. Forecast of warm US winter temperature will check its upside.

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