Spot Silver is likely to rise further towards $31.20 as long as it trades above $30.35 level - ICICI Direct
Bullion Outlook
* Spot gold is likely to rise further towards $2760 level amid weakness in dollar and softening of US treasury yields. Further, demand for safe haven may increase on uncertainty surrounding US President Donald Trump's potential tariffs. US President Donald Trump signaled possibility of implementing duties on Canda and Mexico as soon as next month. On top of it he said his administration is discussing on imposing 10% tariff on goods imported form China on Feb 1. Further, ECB policymakers signaled that central bank will keep lowering interest rates this year.
* Spot gold is likely to rise towards $2760 level as long as it trades above $2720 level. A break above $2760 level prices may rise further towards $2775 level. MCX Gold February is expected to rise further towards Rs.79,700 level as long as it stays above Rs.78,800 level
* Spot Silver is likely to rise further towards $31.20 as long as it trades above $30.35 level. MCX Silver March is expected to rise towards Rs.93,700 level as long as it trades above Rs.91,000 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias on expectation of disappointing economic data from major economies and rise in LME inventories. Further, as Chinese New Year break approaches, new orders in the market are limited and demand continues to weaken. Moreover, investors will remain cautious ahead of key interest rate decisions from the Bank of Japan and the US Federal Reserve in the coming days. Additionally, Trump vowed to hit the European Union with tariffs and said his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1
* MCX Copper January is expected to slip towards Rs.822 level as long as it stays below Rs.840 level. A break below Rs.822 level copper prices may slip further towards Rs.815 level
* MCX Aluminum Jan is expected to face stiff resistance near Rs.257 level and slip back towards Rs.253 level. MCX Zinc Jan is likely to slip towards Rs.274 level as long as it stays below Rs.280 level
Energy Outlook
* NYMEX Crude oil is expected to trade with negative bias and slip further towards $74 level on easing tensions in the Middle East following ceasefire between Hamas and Israel. Further, potential end to the shipping disruption in the Red Sea as Houthis said they will limit their attacks on ships provided the Gaza ceasefire is fully implemented, will reduce risk premium. Additionally, prices may dip as US President Donald Trump plan to maximize US oil and gas production has raised concerns of higher output when market is expected to remain in surplus this year.
* NYMEX Crude oil is likely to slip further towards $74 level as long as its stays below $77 level. MCX Crude oil Feb is likely to slip further towards Rs.6400 level as long as it stays below Rs.6700 level.
* MCX Natural gas Jan is expected to slip further towards 318 level as long as it stays below 335 level. A break below 318 level prices may slip further towards 312 level.
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