MCX Crude oil December is expected to find support near Rs 8000 and rise towards Rs 8500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to remain under pressure and face resistance near $3950 and dip towards $3800 on strong dollar and rising U.S treasury yields. Further, surge in crude oil prices has raised inflation concerns and may persuade Fed to tighten monetary policy. As per CME FedWatch Tool, probability of a 25 bp hike is fully priced in, while the possibility of a 50 bp hike rose to 15% from 0% compared to previous week. Meanwhile, strong ETF inflows and continuous central bank buying may provide some cushion to prices. Investors will keep an eye on US producer price index data later today for further cues on the monetary policy outlook.
• MCX Gold December is expected to face resistance near Rs 139,000 and dip towards Rs 135,000 level.
• MCX Silver December is expected to move in a wide range between Rs 175,000 and Rs 184,000 level. Only a move below Rs 175,000, it would dip towards Rs 172,000 level.
Base Metal Outlook
• Copper prices are expected to remain under pressure and trade lower on weak demand, rising LME inventory and partly due to trouble in AI industry. Further, investors remain concerned that demand may be negatively impacted by any slowdown in the data-center buildout. Further, strong dollar may limit its upside.
• MCX Copper November is expected to face resistance near Rs 1345 level and dip towards Rs 1320 level. Only a move below Rs 1320 level, it will dip towards Rs 1315 level.
• Aluminium prices are expected to trade higher as stocks in LME warehouses at 226,350 tons have dropped nearly 56% since January, while in warehouses monitored by the Shanghai Futures Exchange they fell 31% last week to 132,605 tons, their lowest since December.
• MCX Aluminum November is expected to find support near rs 325 level and rise towards rs 335. MCX Zinc November is likely to face resistance near Rs 415 level and dip towards Rs 404 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $84 and rise towards $90 as hopes for a peace deal between U.S and Iran faded away after U.S president Donald Trump said U.S does not need a peace deal with Iran. Further, Yemen's Iran-aligned Houthis confirmed they had attacked a pumping station on the Saudi East-West oil pipeline, an oil facility in the Saudi Red Sea city of Yanbu. Additionally, as per media reports, A vessel was hit by an unidentified projectile about 14 nautical miles northwest of the UAE emirate of Ras Al-Khaimah. Meanwhile, U.S crude oil inventory rose unexpectedly last week as refineries ran at a slower pace and net imports increased. Saudi Arabia’s crude output soared 26% in October, and Iraq boosted its crude production to a new wartime high
• MCX Crude oil December is expected to find support near rs 8000 and rise towards Rs 8500 level.
• MCX Natural gas November is expected to find support near Rs 308 level and rise towards Rs 320 level.
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