MCX Crude oil November is expected to find support near Rs9000 and rise towards Rs9500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to rise towards $4220 as long as it holds above $4120 on softening of dollar and U.S treasury yields. Dovish comments from Fed officials has strengthened the bets of no rate hike in the October meeting. As per CME FedWatch tool, Traders largely expect the US central bank to hold rates steady this month, while pricing in a 90% chance of a rate hike in December. U.S Gold ETF holdings rose by 187 tonnes over August–September. Central-bank buying is estimated at 250–300 tonnes in Q3. Meanwhile, investors will keep an eye on further economic data later this week for further cues.
• MCX Gold December is expected to find support near Rs146,500 and rise towards Rs150,000 level.
• MCX Silver December is expected to move in a wide range between Rs207,000 and Rs215,000 level. Only a move above Rs215,000, it would rise towards Rs220,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher on softer dollar and supply concerns. Further, threat of tariffs on US copper imports is also tightening supplies on the international market, with metal continuing to flow into US warehouses. Additionally, weaker South American mine output, Democratic Republic of Congo's export ban and El Nino-related disruptions have constrained concentrate availability, keeping treatment and refining charges under pressure. Additionally, better than expected, Chinese economic numbers would also provide support to prices. Meanwhile, workers from two unions at Chile’s Centinela copper mine have signed in an agreement with Antofagasta Minerals on a new collective bargaining contract, ending a strike of more than a week.
• MCX Copper October is expected to find support near Rs1398 level and rise towards Rs1414 level. Only a move above Rs1414 level, it will rise towards Rs1420 level.
• MCX Aluminum October is expected to find support near Rs316 level and rise towards Rs330. MCX Zinc October is likely to find support near Rs414 level and rise towards Rs420 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $98 and rise towards $104 amid escalating tensions in the middle east. Further, Ukraine continued to attack on Russian oil refineries in a spiraling confrontation with Donald Trump over restrictions on US intelligence assistance. Ryazan refinery suspended operations at one of its main processing units following a drone attack on Friday. Additionally, reports emerged that last week US has drawn up strike plans that include using a largeyield bomb after the mid-term elections. Meanwhile, US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports.
• MCX Crude oil November is expected to find support near Rs9000 and rise towards Rs9500 level.
• MCX Natural gas November is expected to face resistance near Rs335 level and dip towards Rs318 level.
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