Spot gold is likely to rally further towards $2740 level as long as it stays above $2700 level - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is likely to continue with its upward momentum and rise further towards $2740 level amid rise in demand for safe haven due to uncertainty surrounding US election and escalating geopolitical tensions in Middle East. Additionally, dovish comments from policymakers will continue to support gold prices. US Fed officials sees more rate cuts ahead while ECB officials also predicts further rate cuts. Looser monetary policy across major economies will hurt global bond yields and support bullion prices. On top of it flurry of stimulus measures from Beijing will also benefit gold prices
* Spot gold is likely to rally further towards $2740 level as long as it stays above $2700 level. MCX Gold December is expected to rise towards 78,400 level as long as it trades above 77,700 level.
* Spot Silver is likely to rise back towards $34.20 level as long as it trades above $33.50 level. MCX Silver is expected to rise towards 98,500 level as long as it trades above 96,500 level.
Base Metal Outlook
* Copper prices are expected to trade with positive bias amid decline in inventories at LME registered warehouses and anticipation of looser monetary policy across major countries. Further, prices may rally on flurry of stimulus packages from China to boost economic growth, fight deflation and shore up imploding property sector. However, sharp upside may be capped on strong dollar and risk aversion in the global markets. Additionally, investors will keep an close eye on outcome of IMF meetings and BRICS summit
* MCX Copper October is expected to rise back towards 822 level as long as it stays above 809 level. A break above 822 prices would rise further towards 828 level
* MCX Aluminum is expected to move north towards 240 level as long as it stays above 236 level
Energy Outlook
* NYMEX Crude oil is expected to slip back towards $68 level on firm dollar and risk aversion in the global markets. Further, prices may dip on falling risk premium as top US diplomat renewed efforts to push for a ceasefire in the Middle East. US Secretary of State Antony Blinken headed to the Middle East seeking to revive talks to end the war. Moreover, prices may slip on demand concerns from China. IEA said China's oil demand growth is expected to remain weak in 2025 despite of recent stimulus measures, as country electrifies its car fleet and grows at a slower pace
* NYMEX Crude oil is likely to move back towards $68 level as long as its stays below $71 level. MCX Crude oil Nov is likely to slip towards 5800 level as long as it stays below 6000 level.
* MCX Natural gas November is expected to hold the support near 230 level and rise back towards 245 level. Only break above 245 level prices may rally further towards 250 level
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