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Bullion Outlook

• Spot gold is likely to rise further towards $2775 level amid weak dollar and softening of US treasury yields following US President Donald Trump comments on lower interest rates. Further, prices may rally on rise in demand for safe haven following uncertainty surrounding potential tariffs plans. Furthermore, multiple ECB policymakers signaled that central bank will keep lowering interest rates this year. Additionally, expectation of disappointing economic data from US would support prices

• Spot gold is likely to rise towards $2775 level as long as it trades above $2730 level. A break above $2775 level prices may rise further towards $2790 level. MCX Gold February is expected to rise further towards Rs.79,900 level as long as it stays above Rs.79,200 level

• Spot Silver is likely to rise towards $31 level as long as it stays above $30.30 level. MCX Silver March is expected to rise towards Rs.93,000 level as long as it trades above Rs.90,000 leve

Base Metal Outlook

• Copper prices are expected to trade with negative bias on fears that Trump threats to impose tariffs on major trading partners may ignite trade war curbing global economic growth and denting demand for industrial metal. Additionally, prices may slip further on expectation of weaker economic data from major economies. Data is likely to show that activity in manufacturing sector continued to remain in contractionary phase, hurting demand for base metal. Meanwhile, weakness in dollar and decline in LME inventories would cushion sharp fall in prices

• MCX Copper January is expected to slip towards Rs.824 level as long as it stays below Rs.840 level. A break below Rs.824 level copper prices may slip further towards Rs.818 level

• MCX Aluminum Jan is expected to face stiff resistance near Rs.255 level and slip back towards Rs.250 level. MCX Zinc Jan is likely to slip towards Rs.268 level as long as it stays below Rs.273 level

Energy Outlook

• NYMEX Crude oil is expected to trade with negative bias and slip further towards $73 level as US President Donald Trump said he would ask Saudi Arabia and OPEC to bring down the cost of oil. Further, EIA weekly inventory data showed US crude oil stockpiles slipped last week but drawdown was smaller than expected. Moreover, investors fear that proposed tariffs by US President would start trade war, hurting global economic growth and dent demand for oil. Meanwhile, weakness in dollar and fear of addition of new tariffs to his sanctions threat against Russia would cushion oil prices

• NYMEX Crude oil is likely to slip further towards $73 level as long as its stays below $76.0 level. MCX Crude oil Feb is likely to slip further towards Rs.6350 level as long as it stays below Rs.6600 level.

• MCX Natural gas Feb is expected to slip further towards 292 level as long as it stays below 305 level. A break below 292 level prices may dip further towards 286 level.

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