Spot Silver is likely to rise further towards $32.00 level as long as it holds the support near $31.0 - ICICI Direct
Bullion Outlook
* Spot gold is likely to continue with its upward trend and rise further hitting new highs amid softening of US treasury yields and rise in demand for safe haven. US President Donald Trump tariff plans are widely seen as inflationary and potential to trigger trade war hurting global economic growth. US President Donald Trump reiterated that the US would put a 25% tariff on imports from Mexico and Canada. Additionally, other major central bank’s likely to continue with its rate cutting cycle. ECB cut borrowing cost by 25bps and left door open to further rate cuts. Meanwhile, investors will remain cautious ahead of US PCE price index report to get more clarity on interest rate path. Spot gold is likely to rise further towards $2820 level as long as it trades above $2760 level. MCX Gold April is expected to rise further towards Rs.82,500 level as long as it stays above Rs.81,400 level
* Spot Silver is likely to rise further towards $32.00 level as long as it holds the support near $31.0. MCX Silver March is expected to rise further towards Rs.94,500 level as long as it trades above ?92,000 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias on strong dollar and signs of weaker than expected global economic growth after the US and Eurozone Q4 GDP grew at a slower than expected pace. Further, market fears that 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. Meanwhile, sharp fall in prices may be cushioned on decline in LME inventories and as other major central bank’s likely to continue with its rate cutting cycle
* MCX Copper February is expected to slip towards Rs.825 level as long as it stays below Rs.837 level. A break below Rs.825 level copper prices may slip further towards Rs.820 level
* MCX Aluminum Feb is expected to rise further Rs.255 level as long as it trades above Rs.249 level. MCX Zinc Feb is likely to hold the support near Rs.265 level and rise towards Rs.270 level
Energy Outlook
* NYMEX Crude oil is expected to trade with negative bias and slip further towards $72.00 level on strong dollar following hawkish signals from US Federal Reserve. Further, US President Donald Trump tariffs threat has raised concerns over trade war, hurting global economic growth and denting demand for oil. He has threatened to impose a 25% tariff as early as Saturday on Canadian and Mexican exports to the US. Moreover, market will keep an close eye on OPEC+ ministerial meeting scheduled for 3 rd February. Additionally, data showing a bigger than expected build in US oil inventories would weigh on crude prices
* NYMEX Crude oil is likely to slip towards $72.00 level as long as its stays below $74.0 level. MCX Crude oil Feb is likely to slip towards Rs.6200 level as long as it stays below Rs.6420 level.
* MCX Natural gas Feb is expected to slip back towards Rs.260 level as long as it trades below Rs.280 level
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