Copper prices are expected to trade with negative bias amid firm dollar and risk aversion in the global markets - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is expected to slip further towards $2600 level amid firm dollar and rise in global bond yields. Further, investors will remain cautious ahead of FOMC meeting minutes as it will provide in-depth understandings into the economic and financial conditions that influenced their vote on interest rates. Moreover, as per CME FedWatch tool, markets has priced out a 50bps reduction at the November meeting. Rise in OI concentration at $2650 call strike would act as immediate resistance for price.
* Spot Gold is likely to slip further towards $2600 level as long as it stays below $2635 level (10-Day EMA). MCX Gold December is expected to move further south towards 74,500 level as long as it trades below 75,550 level.
* Spot Silver is expected to dip further towards $30 level as long as it stays below $31.0 level (20-Day EMA). MCX Silver December is expected to decline further towards 87,000 level as long as it trades below 90,000 level (20-Day EMA). A break below 87000 it would slip further towards 86,000
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid firm dollar and risk aversion in the global markets. Further, prices may dip as China’s economic planning agency failed to announce any new significant stimulus measures. Moreover, prices may dip further on growing expectations of less aggressive monetary easing by US Fed following stronger than expected job report. Additionally, investors will remain cautious ahead of FOMC meeting minutes and comments from Fed officials to get more clarity on rate trajectory
* MCX Copper October is expected dip further towards 820 level as long as it trades below 842 level. A break below 820 prices may move further south towards 813 level
* MCX Aluminum is expected to move further south towards 232 level as long as it stays below 238 level
Energy Outlook
* NYMEX Crude oil is expected slip further towards $72.50 level amid firm dollar and pessimistic global market sentiments. Further, prices may dip on demand concerns from China after National Development and Reform Commission failed to provide new details of policy support measures. Additionally, as per API figures US crude oil stockpiles rose nearly 11 million barrels last week. Moreover, prices may dip on easing concerns about wider Middle East conflict amid reports that Hezbollah is seeking a ceasefire. Furthermore, investors will keep an close eye on official government crude oil inventory report due today
* MCX Crude oil is likely to slip further towards 6070 level as long as it stays below 6350 level. A break below 6070 level it would dip further towards 5950 level
* MCX Natural gas October is expected to slip further towards 224 level as long as it trades below 238 level
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