IGI Logo

Metal’s Outlook

Bullion Outlook

• Spot Gold is expected trade lower amid strong dollar. Furthermore, recent move from China to abolish tax incentives on gold sales could bring further correction in prices. The new rule applies whether the gold is sold directly or processed into other forms, covering investment products like high-purity bars and coins as well as jewellery and industrial materials. This move will increase the cost of buying gold for Chinese consumers. Meanwhile, weaker set of economic numbers from the US could limit its downside.

• Spot gold is likely to remain volatile and move lower towards $3950 as long as it trades under $4060. MCX Gold December is expected to slip towards Rs 119,200 level as long as it trades under Rs 122,500 level.

• MCX Silver Dec is expected to hold the key support at Rs145,000 level and move higher towards Rs 149,800 level. A move above Rs 149,800, it would open the doors towards Rs 151,500.

Base Metal Outlook

• Copper prices are expected to correct further on demand uncertainty from the top consumer China. Weaker than expected manufacturing activity in China would likely to hurt demand prospects. The RatingDog China General Manufacturing PMI declined to 50.6 in October 2025, down from September’s six-month high of 51.2. Rising trade uncertainty and softer growth in both new orders and output weighed on investor sentiments. Meanwhile, depleting inventory levels in LME and expectation of fresh round of stimulus from China would limit the downside to metal prices.

• MCX Copper November is expected to slip towards Rs 1005, as long as it stays under Rs 1020 level.

• MCX Aluminum November is expected to move in the band of Rs 269 and Rs 274 level. Only below Rs 268, it would turn weaker towards Rs 266.

• MCX Zinc November looks to correct towards Rs 296 as long as it trades under Rs 304. The lack of positive developments from US-China trade deal would bring liquidation in the metal.

Energy Outlook

• NYMEX Crude oil expected to move higher amid escalating geopolitical tension in Venezuela and supply concerns from Russia. Prices would get support after OPEC+ has announced to pause in its output hike in the 1 st quarter of 2026. Meanwhile, higher OPEC+ production and a hike in December production by 137,000 barrels per day would restrict any major up move in oil prices.

• On the data front, a strong put base at $60 strike indicates NYMEX crude to hold strong support. On the upside $65 call strike has higher OI concentration which may act as key hurdle. MCX Crude oil November is likely to find support near Rs 5280 and rebound towards Rs 5540. A move above Rs 5540 would further push prices towards Rs 5620,

• NYMEX Natural gas prices are hovering near its 4-month highs on forecast of colder US weather. MCX Natural gas November future is expected to rise towards Rs 370, as long as it stays above Rs 350 level.

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631