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Bullion Outlook

*  Spot gold is likely to face the hurdle near $2530 and move lower towards $2480 amid strong dollar. Further, better than expected economic numbers from US has lowered the probability of 50 bps interest rate cut. Meanwhile, expectation of weak manufacturing PMI data could limit its downside. Moreover, safe haven buying due to the ongoing tension in the Middle East would also provide some support to the bullions. At the same time, a strong call base near 2550 call strike indicates a stiff resistance for the yellow metal.

*  MCX Gold Oct has failed to breach the multiple resistance at 72300. Price is expected to move south towards 71,300. A move below 71,300 it would weaken the price further towards 71,000.

*  Spot silver has been hovering below the 20 day EMA at $28.90. On the weekly charts its has formed a bearish engulfing pattern, indicating weakness in price. MCX Silver December is expected to weaken towards 83,400 as long as it trades under 85,500

Base Metal Outlook

*  Copper prices are expected to remain under pressure amid demand concerns form the top metal consumer China. Further increasing inventory levels in LME to its 5-year highs indicates subdued demand. Moreover, forecast of contraction in the manufacturing activity in US would also weigh on the metal prices. Meanwhile, improved risk sentiments amid prospects of soft landing in US economy could provide some support to the red metals and limit its downside.

*  MCX Copper September is expected to face to hurdle near 810 and move lower towards 798. A move below 798, would weaken further towards 792.

*  MCX Aluminum is expected to face the hurdle near 225 and weaken towards 220.

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