MCX Gold December is expected to face resistance near Rs140,000 and dip towards Rs137,500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to remain under pressure and dip towards $3850 as elevated crude oil prices has raised inflation concerns and may persuade Fed to tighten monetary policy. Meanwhile, strong ETF inflows and Central Bank buying may help prices find some cushion. As per CME FedWatch Tool, Markets are pricing in 74% chance that Federal Reserve will raise interest rates in December. China's PBOC reserves rose by 740,000 ounces to 77.47 million troy ounces in September, the largest increase in three years and the twenty-third consecutive month the PBOC boosted its gold reserves. Investors will continue to assess key U.S economic data for further cues.
• MCX Gold December is expected to face resistance near Rs140,000 and dip towards Rs137,500 level.
• MCX Silver December is expected to move in a wide range between Rs176,000 and Rs185,000 level. Only a move below Rs176,000, it would dip towards Rs170,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher on supply concerns and strong demand from China. Further, Chile’s copper output slumped to its lowest quarterly level in at least two decades as accidents and wild weather compounded operational setbacks and effects of deteriorating ore quality in the top-producing nation. Demand for refined copper is expected to grow 1.5% this year and 1.8% in 2027, even as growth in China slows to 1% from 1.6%. Additionally, Chinese copper buyers rushing to secure supply in a tightening market have sent a key gauge of import demand shooting to a record high. Meanwhile, sharp upside may be limited amid firm dollar.
• MCX Copper November is expected to find support near Rs1365 level and rise towards Rs1385 level. Only a move above Rs1385 level, it will rise towards Rs1390 level.
• MCX Aluminum November is expected to face resistance near Rs335 level and dip towards Rs325. MCX Zinc November is likely to face resistance near Rs410 level and dip towards Rs400 level.
Energy Outlook
• NYMEX crude oil is expected to find face resistance near $104 and dip towards $98 after Iranian and Qatari officials held a third straight day of talks aimed at pushing for a deal to end the US-Israeli war on Iran. Further, as per media reports, U.S. Vice President JD Vance sent a message to Mohsen Rezaei, secretary of Iran's Supreme National Security Council, in an effort to restart peace talks. Key members of OPEC and their allies agreed on Sunday to keep oil production steady in December. Meanwhile, Persian Gulf exports remain constrained, tanker availability is tight, alternative export routes are stretched and global distillate inventories sit around 5% below their five-year average
• 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 Rs290 level and dip towards Rs275 level.
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