MCX Crude oil November is expected to face resistance near Rs9900 and dip towards Rs9500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to expected to remain under pressure and dip towards $3950 ahead of U.S Fed Reserve meeting. Further, elevated crude oil prices has raised inflation concerns and reinforcing expectations that interest rates could remain elevated for longer period. As per CME FedWatch Tool, markets are pricing in 80% chance that the Federal Reserve will raise interest rates in December. Meanwhile, softening of U.S treasury yields, strong ETF inflows and Central Bank buying may help prices find some cushion. Investors will keep an eye on FOMC meeting this week for further cues.
• MCX Gold December is expected to face resistance near Rs144,000 and dip towards Rs141,000 level.
• MCX Silver December is expected to move in a wide range between Rs190,000 and Rs200,000 level. Only a move below Rs190,000, it would dip towards Rs185,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower as persistent concerns over artificial intelligence sector has dampened risk appetite for the industrial metal. Further, expectations grew that US may abandon proposed tariffs on refined copper imports. Markets increasingly anticipate that Trump administration could shelve tariff plans ahead of the midterm elections. Meanwhile, inventories in warehouses registered with Shanghai Futures Exchange tumbled by 26.5%. Additionally, In China, a shortage of copper concentrate is also forcing smelters to deepen production cuts ahead of negotiations on next year’s supply of the raw material.
• MCX Copper November is expected to face resistance near Rs1410 level and dip towards Rs1390 level. Only a move below Rs1390 level, it will dip towards Rs1385 level.
• MCX Aluminum November is expected to find support near Rs322 level and rise towards Rs332. MCX Zinc November is likely to find support near Rs405 level and rise towards Rs420 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $102 and dip towards $98 on hopes of peace talk between U.S and Iran to end war and re-open the Strait of Hormuz. Further, Iran’s President Pezeshkian said his country is ready to back any understanding that leads to regional unity. State media reported that Iran isn’t seeking nuclear weapons. Meanwhile, Persian Gulf crude exports fell for a fourth consecutive week, while Yanbu loadings remained depressed. Crude inventories declined across all regions, while global product stocks edged lower.
• MCX Crude oil November is expected to face resistance near Rs9900 and dip towards Rs9500 level.
• MCX Natural gas November is expected to face resistance near Rs302 level and dip towards Rs288 level.
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