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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to rise towards $1930 levels as long as it sustains above $1910 levels (200-Day EMA) amid weak dollar and expectation of correction in US treasury yields across curve. Further, investors will also focus on PPI and retail sales data along with inflation figures to get cues on interest rate outlook. US Federal Reserve is widely expected to hit pause button from upcoming meeting scheduled next week. As per CME Fed Watch tool investors now see a 92% chance of Fed holding its rate steady in September meeting

• MCX Gold prices is likely to move north towards 59,200 level as long as it trades above the support level of 58,750 levels

• MCX Silver is expected to rise back towards 72,700 level as long as it sustains above 71,500 level 

Base Metal Outlook

• Copper prices are expected to trade with positive bias amid weak dollar, appreciation in Chinese Yuan and as Chinese credit data boosted sentiments. Meanwhile, sharp upside may be capped on expectation of disappointing economic data from Euro Zone. Additionally, investors will also analyze Chinese housing data along with industrial output numbers due this week

• MCX Copper may rise further towards 737 levels as long as it trades above 727 levels

• MCX aluminium is expected to move upward towards 203.00 level as long as it holds the support level of 200.00 level

Energy Outlook 

• NYMEX Crude oil is expected to face hurdle near $88.20 and slip back towards $86 level as economic concerns in major countries would weigh on fuel demand outlook. European Commission forecast euro zone to grow more slowly than previously expected in 2023 and 2024. Additionally, traders await a slew of economic data from US, UK and Europe that could give cues on interest rate outlook. Meanwhile, investors will await industry data on US crude stockpiles

• MCX Crude oil October is likely to slip back towards 7100 level as long as its sustains below 7260 levels

• MCX Natural gas is expected to move upwards towards 223 level as long as it stays above 210 level on forecast of mixed weather outlook

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