MCX Copper October is expected to face resistance near Rs1370 level and dip towards Rs1350 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to expected to remain under pressure and dip towards $3950 as surge in crude oil prices has raised inflation concerns and reinforced expectations that interest rates could remain elevated for longer period. As per CME FedWatch Tool, Markets are pricing in 78% chance that the Federal Reserve will raise interest rates in December. Meanwhile, holdings of gold-backed exchange traded funds have increased for five consecutive days. Overall, net purchases have reached 2.62m ounces, according to Bloomberg data.
• MCX Gold December is expected to face resistance near Rs145,000 and dip towards Rs141,000 level.
• MCX Silver December is expected to move in a wide range between Rs195,000 and Rs205,000 level. Only a move below Rs195,000, it would dip towards Rs190,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower as copper stocks in LME warehouses climbed for a fourth day after 29,050 tons of new inflows. Further, expectations grew that US may abandon proposed tariffs on refined copper imports. Markets increasingly anticipate that Trump administration could shelve tariff plans ahead of the midterm elections. Meanwhile, workers at Canada’s largest copper mine, Highland Valley copper operation, threatened to strike this weekend over pay and conditions. Additionally, weaker South American mine output and El Nino-related disruptions have constrained concentrate availability, keeping treatment and refining charges under pressure.
• MCX Copper October is expected to face resistance near Rs1370 level and dip towards Rs1350 level. Only a move below Rs1350 level, it will dip towards Rs1345 level.
• MCX Aluminum October is expected to find support near Rs320 level and rise towards Rs330. MCX Zinc October is likely to face resistance near Rs420 level and dip towards Rs410 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $98 and rise towards $104 on concerns of further energy supply disruption after Houthi attacks on top exporter Saudi Arabia. The attacks have prompted the US to evacuate some personnel and family members from American embassies in the country. Further, Iran’s Islamic Revolutionary Guard Corps said it hit four violating oil tankers while transferring cargo in the northern Persian Gulf. At least 23 vessels have been hit over the past two weeks, according to ship tracking data from Kpler. Additionally, In Libya, an oil pipeline valve from the Hamada and Tahara oilfields to Zawiya port has been shut, leading to a reduction in production at both fields.
• MCX Crude oil November is expected to find support near Rs9200 and rise towards Rs9500 level.
• MCX Natural gas November is expected to face resistance near Rs315 level and dip towards Rs296 level.
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