Spot Silver is likely to face stiff resistance near $31.10 level and slip back towards $30.40- ICICI Direct
Bullion Outlook
• Spot gold is likely to face stiff resistance near $2790 level on strong dollar and rise in US treasury yields. Dollar and Yields may move further north as US Federal Reserve hit a pause button and left interest rates unchanged and gave little insight into when further reductions may take place. Further, Fed Chair Powell language signals that central bank is been cautious until there is some strong evidence and will be on wait and watch mode. Meanwhile, uncertainties surrounding US President Donald Trump proposed tariffs will increase demand for safe haven. Additionally, investor will keep a close eye on major economic data from US and ECB monetary policy, where central bank is likely to continue with its rate cutting cycle. Spot gold is likely to face stiff resistance near $2790 level and slip back towards $2740 level. MCX Gold April is expected to slip back towards ?80,300 level as long as it stays below Rs.81,100 level
• Spot Silver is likely to face stiff resistance near $31.10 level and slip back towards $30.40. MCX Silver March is expected to slip back towards Rs.90,500 level as long as it trades below Rs.93,000 level
Base Metal Outlook
• Copper prices are expected to trade with negative bias on strong dollar and pessimistic global market sentiments. Further, tariffs threat from US President Donald Trump could disrupt global commodity trade and ignite trade war, hurting global economic growth and denting demand for industrial metal. Moreover, US Federal Reserve held interest rates steady gave little insight on when it plans to lower borrowing costs. Additionally, Chinese markets will remain closed for the week long Lunar New Year holiday.
• MCX Copper February is expected to slip towards Rs.820 level as long as it stays below Rs.837 level. A break below Rs.820 level copper prices may slip further towards Rs.815 level
• MCX Aluminum Feb is expected to rise further Rs.255 level as long as it trades above Rs.248 level. MCX Zinc Feb is likely to hold the support near Rs.263 level and recover towards Rs.270 level
Energy Outlook
• NYMEX Crude oil is expected to trade with negative bias and slip further towards $71.80 level on strong dollar and rise in US crude oil inventories, signaling weaker demand. Further, US President Donald Trump fresh tariffs threat has raised concerns over trade war, hurting global economic growth and denting demand for oil. Additionally, US Federal Reserve held interest rates steady and signaled that central bank would be in no rush to cut them again, elevated borrowing cost would hurt economic growth and reduce demand for oil. Moreover, market will keep a close eye on OPEC+ ministerial meeting scheduled for 3 rd February.
• NYMEX Crude oil is likely to slip towards $71.80 level as long as its stays below $74.0 level. MCX Crude oil Feb is likely to slip towards ?6170 level as long as it stays below Rs.6420 level.
• MCX Natural gas Feb is expected to hold the support near 265 level and rise back towards 280 level.
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