MCX Crude oil is likely to face the hurdle near 5900 and move lower towards 5600 - ICICI Direct
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Metal’s Outlook
Bullion Outlook
• Gold is expected to move in the tight range of $1975 and $2000 ahead of the key US FOMC meeting outcome. The recent inflation data and last week’s improved jobs data has paired rate cut bets in early 2024, which would weaken the gold to slide towards the $1950 mark. On the other side any dovish approach and hint of rate cuts in March would again bring back the bulls in to the picture and push the price back above the $2000 level.
• MCX gold is expected to move in the band of 60900-61650. Only close below 60900 it would turn weaker and hit the next support at 60500. On the flip side above 61650 it would rise towards 62000.
• MCX silver is likely to find support near 71500 and rebound towards the immediate hurdle near 72900. Only close below 71500, it would weaken further towards 70800.
Base Metal Outlook
• Copper prices are likely to trade in a tight range ahead of the key FOMC meeting. The upside in the metal could be capped as the recent announcements from China’s economic work conference didn’t provide any clues for further round of stimulus. Meanwhile, persistence of supply issues from Panama would limit the downside in the red metal.
• MCX Copper December is expected to face the hurdle near 721 and move lower towards the 50 day EMA ay 712. Only close below 712, it would weaken further towards 708.
• MCX Aluminium is expected to move in the range of 193-196. Only close below 193 it would weaken further towards 191.
Energy Outlook
• NYMEX Crude oil prices are expected to face the hurdle near $70 mark and weaken further towards $66 amid increasing prospects of supply and doubts over production cuts by OPEC+ next year. EIA in its latest report lowered the forecast for Brent prices in 2024 to $83 from their previous forecast of $93. Meanwhile, investor will await the weekly inventory data to get more clarity on its direction. Further, decision from the FOMC would also be keenly awaited.
• MCX Crude oil is likely to face the hurdle near 5900 and move lower towards 5600. Close below 5600, would open the doors towards 5500.
• MCX Natural gas December future is expected weaken further towards 195, as long as it remains under 210 amid mild US weather forecast and higher inventory levels.
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