MCX Copper October is expected to rise towards Rs1430 and Rs1436 level as long as it trades above Rs1410 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot gold is expected to stabilize and potentially rebound from recent lows on correction in the US dollar and global treasury yields. Further, prices may find support on growing expectations of a phased deal to reopen the Strait of Hormuz and lift the US blockade. If finalized, this agreement would improve global oil flows and ease both inflation concerns and interest rate hike bets. Furthermore, robust inflows into gold ETFs and persistent central bank buying continue to provide a solid floor for the precious metal. On the other hand, any major upward price momentum may be capped on hawkish central bank commentary.
• MCX Gold October is expected to find support near Rs149,500 and rebound towards Rs153,000 to Rs154,000 levels.
• MCX Silver December is expected to hold its ground near Rs230,000 and rebound towards Rs238,000 to Rs240,000 levels.
Base Metal Outlook
• Copper prices are expected to trade higher due to persistent supply constraints and rapidly depleting inventories on the SHFE. Refined metal availability will tighten further as multiple Chinese smelters undergo scheduled maintenance. Reflecting these acute shortages, the Yangshan premium for imported copper remains elevated near $120 a ton. Meanwhile, all eyes will be on US-China trade discussions and ongoing developments in US-Iran relations
• MCX Copper October is expected to rise towards Rs1430 and Rs1436 level as long as it trades above Rs1410.
• MCX Aluminum October is expected to find support near Rs344 level and rise towards Rs352. MCX Zinc October is likely to hold above Rs416 and rise towards Rs438 levels.
Energy Outlook
• Crude oil prices are projected to remain volatile amid ongoing uncertainty surrounding US-Iran negotiations. The growing prospect of a phased deal could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. Diplomatic efforts are still underway on the sidelines of the UN General Assembly, with Qatari officials mediating the talks. Meanwhile, fresh attacks against Saudi cities by Iran-aligned Houthi militants could increase risk premiums and limit any downside for oil prices.
• NYMEX crude oil in November future is expected to move in a wider range of $90 and $97 per barrel. Only a move below $90 mark it would turn weaker towards $86 mark. MCX Crude oil October is expected to consolidate in the band of Rs8500 and Rs9000 level.
• Natural gas prices are expected to move towards Rs330 level as long as it holds above Rs310. Pipeline outage and forecasts for hot US autumn weather would support prices.
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