Spot gold is likely to hold the support near $2020 level and rise towards $2050 level amid soft dollar and lower US treasury yields - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to face hurdle near $2050 level and slip towards $2020 level amid strong dollar and rise in US treasury yields. Dollar is moving north as US Fed Chair Powell statements pushed back expectations of imminent rate cut, as early as March. However, sharp downside may be cushioned on expectation of weak economic data from US. Further, investors will remain cautious ahead of inflation data from Europe and Bank of England monetary policy. Additionally, demand for safe haven may increase on mounting tension in Middle East
• MCX Gold April prices is likely to face hurdle near 62,900 level and slip towards 62,400 levels
• MCX Silver is expected to follow gold and dip further towards 71,600 level as long as it sustains below 72,800 level.
Base Metal Outlook:
• Copper prices are expected to trade with negative bias as weaker economic data from China and ailing property sector sparked demand worries. Recent batch of economic data from China signals that economy is struggling to regain momentum. Additionally, strong dollar and pessimistic global market sentiments will hurt copper prices. Meanwhile, decline in stockpiles at LME registered warehouses may prevent sharp downside in prices.
• MCX Copper is expected to slip towards 726 level as long as it stays below 738 level. A move below 726 would open the doors for 722 levels.
• Aluminum is expected to slip further towards 203 level as long as it stays below 206 level.
Energy Outlook:
• NYMEX Crude oil is expected to slip further towards $74.50 as long as it stays below $77 level amid strong dollar and risk aversion in the global markets. Market sentiments are hurt as US Fed Chair Powell statements pushed back expectations of imminent rate cut, as early as March. Further, disappointing economic data from China has raised concern over demand outlook. Additionally, US Crude oil inventories unexpectedly rose by 1.23M barrels for the week ending 29th January. Meanwhile, concerns over Middle easter supplies persist amid military actions in Red Sea. Investors will remain cautious ahead of OPEC+ meeting scheduled today
• MCX Crude oil is likely to slid further towards 6150 levels as long as it trades below 6400 levels.
• MCX Natural gas is expected to rise further towards 187 level as long as it trades above 172 level
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