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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to trade with a bullish bias amid soft dollar and lower US treasury yields. Persistence increase in ETF holdings and highest net longs in COMEX Futures which hit its highest level since 2020 indicates bullishness in price. Meanwhile, focus will remain on key US economic numbers and comments from Fed members, which could bring more clarity. COMEX Gold December future has highest OI concentration at 2700 strike, which could act as strong resistance for now.

* MCX Gold Oct is expected to hold the key support at 73750 and move higher towards 74,500. A move above 74,500 would open the doors towards 75,000.

* Spot silver has been holding the key support at $30.20. As long as it holds above $30.20 it is likely to move back towards $31.20. MCX Silver is expected to rise towards 90,500 as long as it holds above 88,200. Only below 88,200 it would turn weaker.

Base Metal Outlook

* Copper prices are expected to hold its ground and trade higher amid improved risk sentiments and the boost from the central bank of China. Further, improved demand of China’s new energy passenger vehicles would keep demand hopes alive and push metal prices of Aluminum and Copper higher. Further, speculation of more measures from China to support the domestic real estate sector would support metal prices. The Government is planning to relax some major curbs on home purchase.

* MCX Copper October is expected to hold the immediate support of 20 day EMA at 812 and move higher towards 828.

* MCX Aluminum is expected to dip towards the 20 day EMA support at 227. A move below 227 would open the doors towards 225. Formation of bearish engulfing pattern on the daily charts indicates correction in prices. Above 231, it would turn bullish towards 233.

Energy Outlook

* NYMEX Crude oil is expected to hold the support of $69 and regain its strength amid concerns of wider Middle East conflicts and a tropical storm could impact oil production in US. Escalating geopolitical tension in the Middle East is likely to support prices amid fear of supply disruption from the key regions. Further, risk of hurricane in US Gulf cost by end of this weekend could impact oil production from top oil producer. Prices, may find strength amid improved risk sentiments and growing prospects of more interest rate cut by major central banks to support growth in the economy.

* MCX Crude oil October is likely to move towards 6020, as long as it holds above 5800. Above 6020, it would open the doors towards 6140.

* MCX Natural gas October is expected to rise towards 245, as long as it holds above 228. Formation of new storm in US Golf coast which is likely to impact production in the region would push prices higher.

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