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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to trade with a bullish bias ahead of an eventful day on Thursday, as most investors would await comments from the Fed chair Jerome Powell and other Fed members. Meanwhile, expectation of moderation in the US GDP numbers and rise in weekly unemployment claims data would also support the Fed to turn dovish. Moreover, persistence increasing ETF holdings and highest net longs in COMEX Futures which hit its highest level since 2020 indicates bullishness in price. Further, closer of OI in ATM and OTM call strikes indicates higher prices. In addition to that increasing OI in ATM and OTM put strike would provide strong support to the yellow metal.

* MCX Gold Oct is expected to hold the key support at 74600 and move higher towards 75,500. A move above 75,500 would open the doors towards 76,000.

* MCX Silver December is expected to rise towards 94,500, as long as it hold above the support of 91,000.

Base Metal Outlook

* Copper prices are expected to hold its gains amid improved risk sentiments. Latest measure from China and growing environments of lower interest rates would push the metal prices higher. Further, improving demand from China as indicated by the rising premiums of refined metals would provide necessary strength to the base metals. Meanwhile, focus will shift to US GDP numbers and speech from the US Federal Reserve which could bring more clarity on the quantum of interest rate cut in this year.

* MCX Copper October is expected to hold the immediate support at 833 and move higher towards 845. Above 845 it would open the doors towards 852.

* MCX Aluminum is expected to rise towards 238, as long as it trades above 233. Prices are likely to get support from the uncertainty around alumina supply in China, as output issues from Guinea and Australia persists.

Energy Outlook

* NYMEX Crude oil is expected to move in the band of $69 to $72 with a bias on the north amid improved risk sentiments and persistent tension in the Middle East. A wider Middle East conflicts is likely to provide support to prices. Further, falling US crude and fuel inventories would also support the energy prices. Prices, may find strength amid growing prospects of more interest rate cut by major central banks to support the growth in the economy. Meanwhile, increasing OI in OTM Call strikes and OTM Put strikes indicates a tight range in the near term. Later the day focus will remain on the comments from the Fed chair Jerome Powell.

* MCX Crude oil October is likely to consolidate in the band of 5800 and 6050 with tilt on the upside. Only a move above 6050 would open the doors towards 6200.

* MCX Natural gas October is expected rise towards 245, as long as it holds above 230 amid production restraints.

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