IGI Logo

Metal’s Outlook

Bullion Outlook

* Spot gold is expected to break psychological support of $2600 level and dip further towards $2580 level on strong dollar and rise in US treasury yields across curve following release of FOMC meeting minutes. Previous week strong job data and yesterday’s FOMC meeting minutes cemented hopes that US Fed would take gradual approach towards rate cut. Moreover, investors will remain cautious ahead of inflation report and initial jobless claims data to gain further clarity of Fed monetary policy stance.

* Spot Gold is likely to slip further towards $2580 level as long as it stays below $2620 level. MCX Gold December is expected to move further south towards 74,550 level as long as it trades below 75,250 level.

* Spot Silver is expected to dip further towards $30 level as long as it stays below $30.90 level (20-Day EMA). MCX Silver December is expected to decline further towards 87,500 level as long as it trades below 90,000 level (20-Day EMA). A break below 87500 it would slip further towards 86,200

Base Metal Outlook

*  Copper prices are expected to recover amid rise in risk appetite in the global markets following expectations that major central banks across globe would further ease monetary policy to revive economic growth. Moreover, China's finance ministry called a press conference for Saturday on fiscal policy, raising expectations of additional stimulus. Moreover, Chinese authorities has announced plans to speed up special purpose bond issuances to support economic growth

* MCX Copper October is expected to hold the support near 820 level and rise back towards 840 level. A break above 840 prices would rally further towards 850 level

* MCX Aluminum is expected to move back towards 236 level as long as it stays above 231 level

Energy Outlook

* NYMEX Crude oil is expected to rise further towards $75 level amid escalating tension in Middle East and concerns over supply disruption due to Hurricane Milton in US. Further, prices may rally on larger than expected drawdowns in gasoline and distillates stocks. Moreover, investors fear that if Israel attacks on Iranian oil infrastructure then it would escalate the conflict further jeopardizing the supply from major exporting countries. Additionally, China's main information office said the finance ministry will point plans on fiscal stimulus to boost the economy at a news conference

* MCX Crude oil is likely to hold the support near 6010 level and rise back towards 6270 level. A break above 6270 prices may rise further towards 6370 level

* MCX Natural gas October is expected to slip further towards 216 level as long as it trades below 229 level.

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631