Spot gold is likely to hold the support near $2035 level and rise towards $2070 level amid soft dollar and decline in US treasury yields - ICICI Direct
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Metal’s Outlook:
Bullion Outlook:
• Spot gold is likely to hold the support near $2035 level and rise towards $2070 level amid soft dollar and decline in US treasury yields. Dollar is moving south as US Fed said rates had peaked and would move lower in coming months, with inflation continuing to fall. Moreover, investors will remain vigilant ahead of US non-farm payrolls data for more cues on Federal Reserve policy path. Additionally, demand for safe haven may increase on mounting tension in Middle East and renewed concerns over regional banking sector
• MCX Gold April price is likely to rise further towards 63,400 level as long as it holds the support near 62,600 levels
• MCX Silver is expected to follow gold and rise further towards 73,000 level as long as it sustains above 71,800 level.
Base Metal Outlook:
• Copper prices are expected to trade with positive bias amid soft dollar and rise in risk appetite in the global markets. Further, prices may move north on concerns over tighter supplies and positive economic data from China. Moreover, persistent decline in stockpiles at LME registered warehouses may support prices. Meanwhile, market will remain cautious ahead of economic data from Euro Zone and US to gauge economic health of the country
• MCX Copper is expected to rise towards 731 level as long as it stays above 725 level. A move below 725 would reverse the trend and open the doors for 722 levels.
• Aluminum is expected to slip further towards 201 level as long as it stays below 203.50 level.
Energy Outlook:
• NYMEX Crude oil is expected to find support near $73.50 and rise towards $75.50 level amid weak dollar and optimistic global market sentiments. Further, prices may move north as mounting tension in Middle East have kept supply disruption concerns elevated. Furthermore, conflicting reports about potential ceasefire in Gaza would be supportive for prices. Additionally, US Federal Reserve Chair Powell has said interest rates had peaked and would move lower in coming months.
• MCX Crude oil is likely to rise further towards 6350 levels as long as it trades above 6150 levels
• MCX Natural gas is expected to slip further towards 165 level as long as it trades below 179 level amid EIA reported that gas inventories fell -197 bcf last week, a smaller draw than expectations of -203 bcf 5 MCX Crude Oil vs. Natural Gas Energy Outlook Daily Commodity Pivot Levels D
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