IGI Logo

Bullion Outlook

* Spot gold is expected to trade lower and move towards $2605 amid strong dollar as better than expected US economic numbers fueled the bets of gradual pace of Fed rate cut cycle in 2025. Further, cease-fire in the Middle East and latest efforts from the Trump administration to cool down geopolitical tensions could check the upside in the bullions. Meanwhile, trade worries and escalating tension between Ukraine and Russia could bring Safe haven demand. Meanwhile, investors focus will turn towards next week’s key US job report.

* Spot gold is likely to face the hurdle near $2675 and move lower towards $2605. A move below $2605 would open the doors towards $2580. MCX Gold February is expected to weaken towards 76,000 as long as it trades under 77,400. Below 76,000 it would weaken further towards 75,500.

* MCX Silver March is expected to move towards 89,400, as long as it trades below 92,400.

Base Metal Outlook

* Copper prices are expected to move in a tight range with positive bias following improved manufacturing PMI data from China. Further, improved demand outlook and depleting inventory levels would also provide support to the base metals. On the other hand, a strong dollar and forecast of weak global manufacturing activities would check its upside. US ISM manufacturing PMI is likely to remain in the contraction phase for the 8 th month in a row

* MCX Copper December is expected to hold the support of 800 and move higher towards 814. A move above 814 would open the doors towards 820.

* Aluminum is expected to find the floor near 239(50 day EMA ) and move back towards 244.

Energy Outlook

* NYMEX Crude oil is likely to remain in the range of $67 and $70 ahead of the key OPEC+ meeting on December 5 th . Growing speculation on delay in output rise by OPEC would provide support. Meanwhile, a strong dollar and sluggish demand growth from China would check its upside. Moreover, weaker economic numbers from US and Europe could hurt the demand outlook.

* On the data front, fresh addition of OI in $70 call strike indicates price to face stiff resistance. A bearish cross over of 20 and 50 day EMA indicates price to remain under pressure. MCX Crude oil December is likely to face the resistance at 5920 and move lower towards 5700.

* Natural gas December future is expected to regain its strength amid forecast of colder weather in eastern parts of US. MCX Natural gas is expected to hold the support of 268 and move higher towards 284. Only close below 268 it would turn weaker towards 262.

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

SEBI Registration number INZ000183631