MCX Aluminum October is expected to find support near Rs320 level and rise towards Rs330 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to expected to remain under pressure and dip towards $4080 as investors continue to assess outlook for U.S monetary policy next week. Further, elevated crude oil prices has raised inflation concerns and may add pressure on Fed to tighten monetary policy. Additionally, firm dollar and elevated U.S treasury yields may further add pressure on bullions. Meanwhile, Exchange-traded funds added 62,700 troy ounces of gold to their holdings last week, bringing this year's net purchases to 2.25 million ounces, according to data compiled by Bloomberg. Meanwhile, investors will keep an eye on further economic data later this week for further cues.
• MCX Gold December is expected to face resistance near Rs149,000 and dip towards Rs144,000 level.
• MCX Silver December is expected to move in a wide range between Rs207,000 and Rs214,000 level. Only a move below Rs207,000, it would dip towards Rs205,000 level
Base Metal Outlook
• Copper prices are expected to trade lower as expectations grew that US may abandon proposed tariffs on refined copper imports. Markets increasingly anticipate that Trump administration could shelve tariff plans ahead of the midterm elections. Further, prices may remain under pressure on firm dollar and growing expectations of tighter monetary policy. Meanwhile, Chile, the world’s largest copper producer, is facing its lowest output in 23 years. Its finance minister expects output to fall 7% this year, with only a minor recovery in 2027. Copper prices continue to benefit from strong growth prospects in data center infrastructure, semiconductor manufacturing and battery energy storage systems.
• MCX Copper October is expected to face resistance near Rs1405 level and dip towards Rs1390 level. Only a move below Rs1390 level, it will dip towards Rs1385 level.
• MCX Aluminum October is expected to find support near Rs320 level and rise towards Rs330. MCX Zinc October is likely to find support near Rs420 level and rise towards Rs430 level
Energy Outlook
• NYMEX crude oil is expected to find support near $95 and rise towards $102 amid escalating tensions in the middle east. Further, Iran said three oil tankers struck naval mines along the southern route of the Strait of Hormuz and caught fire. At least 18 vessels have been hit over the past two weeks, according to ship tracking data from Kpler. Yemen’s Iran-aligned Houthis said they launched several attacks on Saudi energy, airport and military targets over the past 48 hours. Meanwhile, as per media reports, U.S and Iran are close to an agreement, led by Qatar and Pakistan who issued a fresh proposal to revive negotiations to end the Iran war. Further, Ukraine’s President Zelensky said he had a constructive dialogue with U.S.
• MCX Crude oil November is expected to find support near Rs9000 and rise towards Rs9500 level.
• MCX Natural gas November is expected to face resistance near Rs320 level and dip towards Rs308 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
