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Metal’s Outlook

Bullion Outlook

* Spot gold is expected to rise back towards $2670 level amid expectation of correction in dollar and softening of US treasury yields. Further, escalating geopolitical tension in region will increase demand for safe haven. China conducted large scale military exercises around Taiwan and its islands yesterday in what it called a "warning" against Taiwan's independence. Moreover, investors will keep an close eye on economic data from US and statements from Fed officials to get more clarity on central banks monetary stance.

* Spot Gold is likely to rise back towards $2670 level as long as it stays above $2630 level. MCX Gold December is expected to rise towards 76,500 level as long as it trades above 75,700 level (10-Day EMA)

* Spot Silver is expected to dip further towards $30.70 level as long as it stays below $31.50 level. MCX Silver December is expected to slip back towards 89,500 level as long as it trades below 91,800 level. A break below 89,500 level prices may dip further towards 89,000 level

Base Metal Outlook

* Copper prices are expected to trade with negative bias as weak economic data from China raised concerns over economic health of the country. Further, China’s stimulus announcement over the weekend failed to boost market confidence as it lack concrete monetary amounts. Meanwhile, sharp downside may be cushioned as China’s imports of unwrought copper rose in September, due to improving seasonal demand and a better consumption outlook. Data showed imports stood at 479,000 metric tons last month, up 15.4% from August’s imports

* MCX Copper October is expected to dip further towards 820 level as long as it stays below 835 level. A break below 820 prices would slip further towards 813 level

* MCX Aluminum is expected to move back towards 235 level as long as it stays below 240 level

Energy Outlook

* NYMEX Crude oil is expected to slip further towards $70 level amid another downgrade of oil demand outlook by OPEC. OPEC cut its forecast for global oil demand growth in 2024 and 2025, marking the group’s 3 rd consecutive downward revision. Further, prices may slip on media reports that Israel is willing to strike Iranian military and not nuclear or oil targets. Moreover, China's stimulus plans failed to inspire investor confidence. Furthermore, trade data showed China's crude imports for the first 9 months of the year fell nearly 3% from last year to 10.99 million bpd. Addition of OI at call strike 72 would act as immediate resistance for the prices, while higher OI concentration at put strike 70 would act as strong support

* MCX Crude oil Nov is likely to move south towards 5900 level as long as it stays below 6300 level.

* MCX Natural gas October is expected to slip further towards 204 level as long as it trades below 215 level.

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