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Metal’s Outlook

Bullion Outlook

• Spot Gold is expected to remain under pressure and face resistance near $4040 and dip towards $3900 on strong dollar and elevated 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 to 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 Rs142,000 and dip towards Rs138,000 level.

• MCX Silver December is expected to move in a wide range between Rs178,000 and Rs188,000 level. Only a move below Rs178,000, 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, premiums have soared in China for spot physical copper cathode as domestic smelter output declined and arrivals of seaborne metal remained limited. 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 Rs1352 level and dip towards Rs1330 level. Only a move below Rs1330 level, it will dip towards Rs1325 level.

• MCX Aluminum November is expected to find support near Rs325 level and rise towards Rs335. 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 as hopes for progress in peace talks over the Middle East and RussiaUkraine wars pressured the market. Further, Russian and Ukrainian negotiators agreed to a major prisoner exchange at two days of peace talks in Abu Dhabi. Additionally, OPEC+ crude oil production jumped in October, led by a sharp increase in output from Saudi Arabia despite continued disruption to shipments through the Strait of Hormuz. Meanwhile, Iran security chief said Iran will not allow even a single particle of enriched nuclear material to leave the country and there will be consequences if US launches new strikes. Investors will keep an eye on today’s weekly U.S crude inventory data for further cues.

• MCX Crude oil December is expected to face resistance near Rs8300 and dip towards Rs7800 level.

• MCX Natural gas November is expected to find support near Rs304 level and rise towards Rs318 level.

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