MCX Copper November is expected to face resistance near Rs1350 level and dip towards Rs1325 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to remain under pressure and face resistance near $4100 and dip towards $3980 on strong dollar and rising U.S treasury yields. Further, hotter than expected inflation data and hawkish comments from key Fed members has reinforced expectations of a bigger interest rate hike this year. As per CME FedWatch Tool, probability of a 25 bp hike is fully priced in, while the possibility of a 50 bp hike rose to 10% from 0% before the data. Meanwhile, strong ETF inflows and continuous central bank buying may provide some cushion to prices. Investors will continue keep an eye on key economic data later this week for further clues on the monetary policy outlook.
• MCX Gold December is expected to face resistance near Rs143,000 and dip towards Rs139,000 level.
• MCX Silver December is expected to move in a wide range between Rs177,000 and Rs187,000 level. Only a move below Rs177,000, it would dip towards Rs175,000 level.
Base Metal Outlook
• Copper prices are expected to remain under pressure and trade lower as investors remain concerned that demand may be negatively impacted by any slowdown in the data-center buildout. Further, Democrats victory in both chambers reduced expectations for refined-copper tariffs. Meanwhile, China's third-quarter GDP grew by 4.5%, and September industrial production rose by 5.5%, reinforcing factory activity. Further, supply concerns and strong demand from China may limit its downside. China’s October copper concentrate imports slumped 11% from a year earlier, as per customs data at a time when smelters face another profit hit as sulphuric acid prices fall.
• MCX Copper November is expected to face resistance near Rs1350 level and dip towards Rs1325 level. Only a move below Rs1325 level, it will dip towards Rs1320 level.
• MCX Aluminum November is expected to face resistance near Rs330 level and dip towards Rs320. MCX Zinc November is likely to face resistance near Rs415 level and dip towards Rs405 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $88 and dip towards $84 on hopes of an end to the Middle East conflict. Further, Hopes for a breakthrough in negotiations to end the US war in Iran have increased after last week’s Democratic sweep of US midterm elections, adding pressure to the Trump administration to seek an off-ramp to the war. Meanwhile, Iran insists US must lift its naval blockade and halt sanctions, while the US wants further concessions over its nuclear program. Risks to regional energy infrastructure also continue to rise following the targeting of Saudi Arabia's key East-West pipeline and the two limited U.S. strikes on Iran's Qeshm Island
• MCX Crude oil November is expected to face resistance near Rs8300 and dip towards Rs7800 level.
• MCX Natural gas November is expected to find support near Rs300 level and rise towards Rs315 level.
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