MCX aluminium is expected to move downward towards 203.50 level as it will face hurdle near 205.50 level - ICICI Direct
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Metal’s Outlook
Bullion Outlook
* Spot gold is likely to slip towards $1900 levels as long as it sustains below $1925 levels amid firm Dollar and US treasury yields across curve. US treasury yields are moving up on anticipation that borrowing cost may remain elevated for longer period than initially forecasted. On top of it Fed officials flagged that interest rates would remain higher for longer. Meanwhile, market will remain cautious ahead of PCE index data, Fed’s preferred inflation gauge scheduled later in this week to get cues on interest rate outlook
* MCX Gold prices is likely to move south towards 58,350 level as long as it trades below the resistance level of 58,900 levels
* MCX Silver is expected to follow gold prices and move lower towards 71,250 level as long as it sustains below 72,700 level
Base Metal Outlook
* Copper prices are expected to trade with negative bias amid firm dollar, weak global market sentiments and rising inventories at LME registered warehouses. Copper stocks are up more than 200% since mid-July. Market sentiments are hurt as key central banks reinforced message that interest rates will remain higher for longer. Additionally, expectation of disappointing economic data from US will hurt prices. US Consumer confidence is forecasted to have extended its decline in September.
* MCX Copper may slip further towards 707 levels as long as it trades below 720 levels
* MCX aluminium is expected to move downward towards 203.50 level as it will face hurdle near 205.50 level
Energy Outlook
* NYMEX Crude oil is expected to slip further till $88 levels amid strong dollar and risk aversion in the global markets. Further, investors fear that fuel demand will be hurt by major central bank holding interest rates higher for longer duration. Additionally, rating agency Moody’s said that US government shutdown would harm the country’s credit. Moreover, Russia eased its temporary ban on gasoline and diesel exports. Meanwhile, further downside may be limited on concerns over tighter global supplies
* MCX Crude oil is likely to move down towards 7300 level as long as its sustains below 7500 levels
* MCX Natural gas October is expected to move upwards towards 250 level as long as it stays above 235 level
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