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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to holds to its gains and move towards the $1960 amid weakness in the US dollar index and decline in US treasury yields across curve. The softening of the US economy in the 2 nd quarter and drop in US job openings has raised the bets that the Fed will remain less hawkish then anticipated. The CME Fed-Watch tool suggests more than 88% probability of no hike in rates in September and the probability of hike in Novembers dropped to 41% from 50% after the weak set of data from US

• MCX Gold futures is expected to rise towards 59700, as long as it holds above 59200.

• MCX Silver December is expected to rise 77100, as long as it holds above 75800. Only close below 75800, it can correct towards 75200

Base Metal Outlook

• Copper prices are expected to find support near 733 and rise back towards 744 amid soft dollar and hopes of additional measures from China to support the housing sector. Additionally, Chinese manufacturing activity shrank at slower than expected pace in August. Figures showed that activity in sector was improving, although slightly

• MCX Copper is likely to find support near the 200 day EMA at 733 and move further towards 742-744 zone. Only a move above 744 would open the doorstowards 750.

• MCX aluminium has moved above the higher end of the consolidation range 197-200, suggesting higher bias. For the day, it is expected to to rise towards 202.50, as long as 199 holds as support

Energy Outlook

• NYMEX Crude oil is expected to hold its gains and rise towards $82.80 mark amid tighter than anticipated crude supplies and weakness in dollar. Further, expectation of extension of the voluntary output cut into October by Saudi Arabia could also support prices to trade higher. Furthermore, supply disruption from the Gulf coast due to hurricane Idalia could also support the rally in oil prices

• MCX Crude oil is likely find support near 6650 and rise towards 6850. Only close above 6850, it would open the doors towards 6950

• MCX Natural gas prices are expected to rise towards 234, as long as it holds above 220. The forecast for excessive heat to return to central and eastern US could boost the demand from electricity providers.

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