Spot gold is likely to hold support near $2000 level and move back towards $2038 level amid softness in the dollar and safe haven buying - ICICI Direct
Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to hold support near $2000 level and move back towards $2038 level amid softness in the dollar and safe haven buying. Dollar and yields may move lower on increasing expectation of Fed rate cut after the US core PCE price index dipped below the 3% for the first time in a year. The CME Fed-Watch tool indicates a 47.7% probability of rate cut in March against previous day reading of 46.2%. Meanwhile, increasing tension in the Middle east will bring safe haven buying into the bullions.
• MCX Gold prices is likely to find support near 61,800 and move higher towards 62,350 level. Only close above 62,350 it would extend its rebound towards 62,800
• MCX Silver is expected to follow yellow metal and rise back towards 72,500 level as long as it sustains above 71,000 level.
Base Metal Outlook:
• Copper prices are expected to trade with a positive bias amid softness in the dollar and support from fresh stimulus measures by the Chinese government. Further, depleting stocks and increasing supply concerns would support the red metal to hold its gains. Meanwhile, sluggish demand outlook from the top metal consumer China would limit its upside
• MCX Copper February is expected to find support near 726 and move higher towards 735. Only a move above 735 it would rally towards 740.
• Aluminum is expected to trade higher towards 205, as long as it holds above the 201 mark.
Energy Outlook:
• NYMEX Crude oil is expected to move higher towards $80 on expectation of improved demand and persistent tension in Middle east. Fresh attacks by the Houthi militants in the red sea has raised the concerns on supply. Further, slump in US crude oil output and expectation of more stimulus measures from China to support its economy would push the oil prices higher. Meanwhile, focus will shift towards key FOMC meeting due this week
• MCX Crude oil Feb is likely to find support near 6300 and move higher towards 6500. Above 6500 , it would open the doors towards 6600.
• NYMEX Natural gas is expected to find support and move north on forecast of colder weather in the first week of February. MCX Natural Gas February future is expected to rise towards 200, as long as holds above 180.
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