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Metal’s Outlook

Bullion Outlook.

* Spot gold is likely to remain under pressure and weaken towards the next support level near $1880 amid strong dollar and rise in the US treasury yields. The increasing probability of another 25 bps hike in this year could weaken the precious metals. The CME FedWatch toll suggest a rise in probability of 25 bps hike in November to 38%. Further break down of the 200 day SMA, along with the rising trend channel could restrict the spot gold to go beyond $1910 mark

* MCX Gold futures is expected to weaken towards 58000, as long as it trades under 58600.

* MCX Silver is likely to face the hurdle near 71000 and weaken towards 69400 levels.

Base Metal Outlook

• Copper prices are expected to take a pause in its decline and move north amid hopes of fresh stimulus from the top metal consumer China to support its slowing property market. Meanwhile, strong dollar and rising inventory levels in LME could restrict more upside in the metal

• MCX Copper is likely to consolidate in between 718 and 728. Only a move above 728 it would rise towardsthe 200 day EMA at 734.

• MCX aluminium is expected to weaken towards 195, as long as it trades under the 199 mark.

Energy Outlook

* NYMEX Crude oil is expected to hold the key support level near $78 level and rise back towards the $82 level amid hopes of fresh stimulus from China. Further, better US earning season and improved economic numbers would help the NYMEX crude to trade on a bullish mode. Moreover tight supplies from OPEC nations could limit its downside in prices

* MCX Crude oil is likely to weaken hold support near 6580 and rise back towards 6780.

* MCX Natural gas is expected to consolidate in between 214 and 224. Only a move above 224 it would rise back towards 230.

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