Spot Silver is likely to face stiff resistance near $30.40 level and dip further towards $29.50 - ICICI Direct
Bullion Outlook
* Spot gold is likely to slip towards $2720 level on strong dollar and rise in US treasury yields. Further, investors will remain cautious ahead of US Federal Reserve monetary policy where central bank is likely to keep its policy unchanged, while all eyes will be on comments to get clarity on future rate path. Additionally, market will try to decode how US President Donald Trump's policies will impact Fed’s views on growth and inflation. Moreover, expectation of improved economic data from US will hurt prices
* Spot gold is likely to slip towards $2720 level as long as it trades below $2760 level. MCX Gold February is expected to slip towards Rs.79,000 level as long as it stays below Rs.80,000 level
* Spot Silver is likely to face stiff resistance near $30.40 level and dip further towards $29.50. A break below $29.50 level prices may slip further towards $29.0 level. MCX Silver March is expected to slip towards Rs.88,500 level as long as it trades below Rs.91,500 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias on weak global market sentiments and disappointing economic data from China. China's manufacturing activity unexpectedly contracted in January, raising concerns over demand. Moreover, caution prevails ahead of China’s week-long Lunar New Year holiday. Additionally, US President Donald Trump’s threat to impose 10% duty on Chinese imports on February 1 st will hurt prices.
* MCX Copper February is expected to slip towards Rs.820 level as long as it stays below Rs.835 level. A break below Rs.820 level copper prices may slip further towards Rs.815 level
* MCX Aluminum Feb is expected to face stiff resistance near Rs.251 level and slip further towards Rs.246 level. MCX Zinc Feb is likely to slip towards Rs.266 level as long as it stays below Rs.271 level
Energy Outlook
* NYMEX Crude oil is expected to trade with negative bias and slip further towards $72.0 level on weak global market sentiments. Further, disappointing economic data from China fueled concerns that weakness in economy will keep its energy demand depressed. Moreover, US President Donald Trump reiterated his call for OPEC to reduce oil prices. Additionally, all eyes will be on monetary policy outcome of major central banks, like Federal Reserve and the European Central Bank, as decision weighs on economic growth and oil demand expectations
* NYMEX Crude oil is likely to slip further towards $72.00 level as long as its stays below $74.0 level. MCX Crude oil Feb is likely to slip further towards Rs.6200 level as long as it stays below Rs.6400 level.
* MCX Natural gas Feb is expected to slip further towards 270 level as long as it stays below 285 level. A break below 270 level prices may dip further towards 265 level (50-Day EMA)
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