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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to continue with its upward momentum and rise further towards $2750 level amid weakness in dollar and softening of US treasury yields. Further, prices may rally on rise in demand for safe haven due to uncertainty surrounding US election and ongoing geopolitical tensions. Furthermore, prices may rally on expectations that major central banks across globe would continue to ease monetary policy further. Additionally, fund buying of gold would support prices, long gold positions in ETFs rose to an 8 ½ month high. Moreover, BOJ officials see little need to rush to increase interest rates this month.

* Spot gold is likely to rally further towards $2750 level as long as it stays above $2700 level. MCX Gold December is expected to rise towards 78,000 level as long as it trades above 77,300 level.

* Spot Silver is likely to face stiff resistance near $34 level, only break above this level prices may rally further towards $34.50 level. MCX Silver is expected to rise towards 97,000 level as long as it trades above 94,000 level.

Base Metal Outlook

* Copper prices are expected to trade with positive bias amid weakness in dollar, decline in inventories at LME registered warehouses and rise in risk appetite in the global markets. Further, prices may rally on better than expected industrial and retail sales data from China, hopeful signs for the country’s flagging economy. Additionally, China’s central bank cuts its loan prime lending rates to shore up the imploding property sector and revive growth. PBOC cut 1 and 5 year LPRs by 25 bps to 3.1% and 3.6% respectively

* MCX Copper October is expected to rise further towards 832 level as long as it stays above 815 level. A break above 832 prices would rise further towards 840 level

* MCX Aluminum is expected to move north towards 241 level as long as it stays above 237 level

Energy Outlook

* NYMEX Crude oil is expected to rise back towards $70 level on weakness in dollar, optimistic global market sentiments and simmering Middle East tension. Additionally, prices may move north on expectation that major central banks across globe would continue to ease monetary policy to boost economic growth. Lower borrowing costs can boost economic growth and demand for oil. Furthermore, People’s Bank of China (PBOC) lowered its 1-year and 5-year lending rates by 25bps to support economic growth and fight off deflation.

* NYMEX Crude oil is likely to move back towards $70 level as long as its stays above $67.50 level. MCX Crude oil Nov is likely to rise towards 5950 level as long as it stays above 5670 level.

* MCX Natural gas November is expected to hold the support near 230 level and rise back towards 240 level. Only break below 230 prices may further weaken towards 225 level

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