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Metal’s Outlook

Bullion Outlook

* Spot gold is to expected to face the hurdle near $2725 and move lower towards $2660 amid strong dollar. Sticky inflation numbers could derail the Feds stance on December rate cut and weigh on the bullions to trade lower. Meanwhile, growing prospects of loose monetary policy from major central banks and escalating geopolitical tension in the Middle East would provide support to the yellow metal. Moreover, focus will remain on this week’s key inflation numbers which could give further clarity on central banks next move.

* Spot gold is likely to face the hurdle near $2725 and move towards $2660. A strong call base near 2725 and 2750 strike indicates prices to face stiff resistance and move towards $2660. MCX Gold February is expected to face the hurdle near 79,000 and move towards 77,700.

* Spot silver has been trading above its 4-week high of $31.60, indicating bullish bias. MCX Silver March is expected to move towards 97,200, as long as it holds above 94,000.

Base Metal Outlook

* Copper prices are expected to move higher on hopes that China stimulus and fiscal measures would boost demand. Latest measures from China indicates a more pro active policy measure to counter the sluggish growth in the economy. Further, year end demand and improved new loans would provide support to the yellow metal. Additionally, data from China showed November copper imports hit a 1-year high, signaling demand.

* MCX Copper December is expected to hold its gains and move towards 840, as long as it holds above 20 day EMA 820. Reversal in the oscillator would also indicates an upward movement in the red metal.

* Aluminum is expected hold the support of 20 day EMA at 242 and move towards 246 amid higher global premiums and supply concerns from China.

Energy Outlook

* NYMEX Crude oil is expected to face the hurdle near $70 and move lower towards $67 amid improving oil supply scenario. API data suggested a surprise rise in oil inventory by 0.49 million barrels last week. It was the 5 th week rise in last 8 weeks signaling improved supplies from US. Meanwhile,, escalating geopolitical tension in the Middle East and concerns in Syria could provide some support to oil prices. Further, hopes of fresh round of stimulus from China and lower interest rates from other central banks would improve the risk appetite.

* On the data front, closer of OI in ATM and OTM call strikes indicates a short term rebound in price. But higher OI concentration near 70 call strike would act as major resistance. MCX Crude oil December is likely to face the hurdle near 5950 and move lower towards 5700.

* MCX Natural gas December future is expected to hold the 20 day EMA support at 260 and move towards 276.

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