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Metal’s Outlook

Bullion Outlook

• Gold is expected to hold its ground near $2020 and extend its gains towards $2050 after the Fed signaled end to its rate hike regime. The weakness in the dollar and decline in US treasury yields would support the bullions to remain firm. The CME fed-watch tool indicates more than 65% probability of rate cut in March 2024. Meanwhile, better than expected economic numbers from US could limit the upside in gold beyond the $2050.

• MCX gold is expected to move towards 62,900, as long as it trades above 62000. Above 62900 it would rise further towards 63,200.

• MCX silver is likely to follow the yellow metal and rise towards 75,400, as long as it holds above 74,000. A move above 75,400 would push the price towards 76,500.

Base Metal Outlook

• Copper prices are likely to move higher on better economic numbers from China and expectation of improved manufacturing activity in US. Gain in the Industrial production numbers has increased the prospects of demand in the red metal. Further, improved risk appetite in the global markets and supply disruptions from the top metal producers would also help the metal to trade firm. Meanwhile, traders will eye key manufacturing numbers from Euro zone and US to get more clarity.

• MCX Copper December is expected to rise towards 732, as long as it holds above the 200 day EMA at 722.

• MCX Aluminium is expected to find support near 199 and move higher towards 203.

Energy Outlook

• Crude oil prices are expected to rise again towards the $74 mark on expectation that the Fed will cut the rates next year. The softness in the dollar and improved global risk sentiments would also support the NYMEX crude to hold above the key support near $70. Further concerns over supply disruption in the Middle East would strengthen the oil prices to extend its gains.

• MCX Crude oil is likely to find support near 5950 and move towards 6200 level. Only close above 6200, would open the doors towards 6300.

• MCX Natural gas December future is likely to find the floor near 190 and rise towards the 200 mark amid improved export demand. Above 200, it would open the doors towards 206.

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