MCX Crude oil November is expected to face resistance near Rs9400 and dip towards Rs8800 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $3900 and rise towards $4000 on weak dollar and softening of U.S treasury yields. Further, sharp dip in crude oil prices has eased inflation concerns and may persuade Fed to loosen monetary policy. Further, strong ETF inflows and Central Bank buying has helped prices to move upside. As per CME FedWatch Tool, Markets are pricing in 73%, chance that Federal Reserve will raise interest rates in December, down from 80% a week ago. Meanwhile, attention is now shifting to US midterm elections to assess the potential impact on fiscal policy, geopolitics and broader market sentiment.
• MCX Gold December is expected to find support near Rs138,000 and rise towards Rs141,500 level.
• MCX Silver December is expected to move in a wide range between Rs176,000 and Rs185,000 level. Only a move above Rs185,000, it would rise towards Rs190,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher on supply concerns and strong demand from China. Further, Chile’s copper output sank to its lowest level in more than two decades in the last quarter. State copper commission, Cochilco, cut its 2027 production forecast to 5.08mt, implying a rebound of 3%. Additionally, US seaborne imports of raw copper and alloys climbed in October, remaining elevated as the market awaits a decision on whether the Trump administration will impose tariffs on refined copper. Meanwhile, copper inventories in LME registered warehouses rose to 293,775 tons, their highest since mid-July.
• MCX Copper November is expected to find support near Rs1375 level and rise towards Rs1395 level. Only a move above Rs1395 level, it will rise towards Rs1400 level.
• MCX Aluminum November is expected to find support near Rs326 level and rise towards Rs336. MCX Zinc November is likely to find support near Rs410 level and rise towards Rs425 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $100 and dip towards $94 as U.S and Iran explored a diplomatic solution to the eight-month conflict. Further, as per media reports, President Trump told Israeli Prime Minister Netanyahu that he wants to give diplomacy with Iran more time before resuming strikes on the country. Meanwhile, Persian Gulf states are steeling themselves for a heavy bombardment from Iran, that could trigger a cycle of retaliation. Additionally, global oil market tracker shows Persian Gulf exports are running at 14.3mb/d, while the effective flow of oil through the Strait of Hormuz has fallen to 56% of the pre-conflict normal and is trending lower. Meanwhile, reports of US attacks on Iran’s Qesham Island could bring uncertainty and limit downside in oil prices.
• MCX Crude oil November is expected to face resistance near Rs9400 and dip towards Rs8800 level.
• MCX Natural gas November is expected to face resistance near Rs280 level and dip towards Rs266 level
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