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Metal’s Outlook

Bullion Outlook

• Gold prices are likely to strengthen its gains and march towards $2100, as long as it trades above the $2070. The weakness in the US dollar and fall in US treasury yields would provide necessary fuel to the precious metals to hold their gains. Further, increasing bets of interest rate cut by the Federal Reserve would support the bullions. Markets are now pricing more than 150 bps of rate cuts next year and probability of rate cut in March moved up to 74%. Meanwhile, traders will focus key economic numbers to get more clarity on the frequency of rate cuts.

• MCX gold is expected to rise towards 64,000,as long as it holds above 63,200.

• MCX silver is likely to rise towards 76200, as long as it trades above the 10 day EMA at 74,810.

Copper

• Copper prices are expected to hold to its gains and trade with a bullish bias amid weakness in the dollar and increasing prospects of interest rate cut by the PBOC to support the recovery in the economy. Further. depleting stocks in SHFE and persistence supply concerns would help the red metal to end the year on a higher note.

• MCX Copper January is expected to rise towards 745, as long as it holds above the 735. Above 745, it would rise towards 748

• Aluminum is expected to hold its gains amid supply concerns and improved export numbers. MCX Aluminum is likely to rise towards the 214 mark as long as it holds above 209 level.

Crude oil

• Crude oil prices are likely to move in a tight range of $72.50-76 as most traders will eye on key developments from the Red Sea. Meanwhile, rise in crude oil inventories in the US would limit the upside in prices. The Weekly EIA inventory is expected to show a rise in stocks in gasoline and distillate products, where as crude oil inventory could witness a marginal drawdown. Further, weakness in the dollar could limit the downside in the prices.

• MCX Crude oil January is likely to find support near 6160 and move back towards 6340. Only close above 6340 would bring fresh buying interest in the oil prices.

• MCX Natural gas January future is likely to face the hurdle near 214 and move lower towards 200 mark. Below 200, it would weaken towards 195

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