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 hold the support near $2020 level and rise towards $2050 level amid soft dollar and lower US treasury yields. Dollar and Yields may move south further ahead of FOMC policy meeting & statement and U.S job data. US Fed is highly anticipated to keep rates unchanged in this meeting but may provide some cues on timing and number of rate cuts this year. Additionally, demand for safe haven may increase on mounting tension in Middle East
• MCX Gold April prices is likely to hold the support near 62,200 level and rise towards 62,800 levels
• MCX Silver is expected to follow gold and rise further towards 73,000 level as long as it sustains above 71,700 level.
Base Metal Outlook:
• Copper prices are expected to trade with negative bias as disappointing economic data from China and ailing property sector sparked demand worries. Data showed China’s Manufacturing PMI contracted for 4 th consecutive month and activity in service sector continued to slowed down. Meanwhile, decline in stockpiles at LME registered warehouses and weakness in dollar may prevent sharp downside in prices.
• MCX Copper is expected to slip towards 729 level as long as it stays below 736 level. A move above 736 would reverse the trend and open the doors for 740 levels.
• Aluminum is expected to rise further towards 206 level as long as it stays above 203 level.
Energy Outlook:
• NYMEX Crude oil is expected to rise further towards $79.50 as long as it stays above $76 level amid soft dollar and signs of strength in global economy after IMF raised its 2024 global growth forecast. Further, investors fear that heightened geopolitical tension in Middle East threaten to disrupt crude supplies from the region. Additionally, U.S. began reimposing sanctions on Venezuela this week after the country's top court upheld a ban blocking the candidacy of the leading opposition hopeful in a presidential election later this year. Moreover, as per API US crude inventories fell by about 2.5 million barrels for the week ended 26th January. Official government inventory is expected to show weekly crude oil supplies decreased by about 0.8M barrels. MCX Crude oil is likely to rise further towards 6600 levels as long as it trades above 6300 levels.
• MCX Natural gas is expected to slip further towards 167 level as long as it trades below 178 level
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