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Metal’s Outlook

Bullion Outlook

• Gold is expected to rise towards the $2045 mark , as long as it holds above $2010 level. Softness in the US dollar index and decline in the treasury yields would support the bullions to regain its momentum. Expectation of weaker US building permits and housing starts would weigh on the dollar and support the bullions to trade higher. The CME fed-watch tool indicates more than 64% probability of rate cut in March 2024. Meanwhile, focus will remain on the outcome of BOJ policy decision.

• MCX gold is expected to hold the 10 day EMA support at 61900 and rise again towards 62,600. Only close below 61900 would open the doors towards 61600.

• MCX silver is likely to follow the yellow metal and move towards 75,000, as long as it trades above 73,800.

Base Metal Outlook

• Copper prices are expected to weaken further amid concerns over weak demand from top consumer China and expectation of weakness in the housing sector growth in US. However, supply disruption from major producing mines would limit the downside in the metals

• MCX Copper December is expected to slide towards the immediate support near 717, as long as it trades under the 726 mark. Only a move below 717, it would slide towards 713.

• MCX Aluminium is expected to find support near 202 and move higher towards 206. Only close below 202, it could correct towards 200 mark.

Energy Outlook

• Crude oil prices are expected to move back towards the $74 mark as attacks on the ships in Red sea disrupted the maritime trade and forced companies to reroute the vessels. This rerouting will increase the cost of transportation and push the oil prices higher. Meanwhile, well supplied oil markets could limit any major upside in the NYMEX crude to go beyond the $74 level.

• MCX Crude oil January is likely to find support near 6040 and move towards 6280 level. Only above 6280 it would rise towards 6350

• MCX Natural gas December future is likely to rise towards 218, as long as it trades above the 204 mark. Improved gas exports and expectation of winter demand would support the gas prices to hold its gains.

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