MCX Gold December is expected to face resistance near Rs148,000 and dip towards Rs144,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to expected to remain under pressure and dip towards $4060 as investors continue to assess outlook for U.S monetary policy next week. Further, elevated crude oil prices has raised inflation concerns and may add pressure on Fed to tighten monetary policy. As per CME FedWatch Tool, Markets are pricing in 88% chance that the Federal Reserve will raise interest rates in December. Meanwhile, Exchange-traded funds added 62,700 troy ounces of gold to their holdings last week, bringing this year's net purchases to 2.25 million ounces, according to data compiled by Bloomberg. Meanwhile, investors will keep an eye on further economic data later this week for further cues.
• MCX Gold December is expected to face resistance near Rs148,000 and dip towards Rs144,000 level.
• MCX Silver December is expected to move in a wide range between Rs205,000 and Rs213,000 level. Only a move below Rs205,000, it would dip towards Rs200,000 level.
Base Metal Outlook
• Copper prices are expected to trade lower on firm dollar and rising LME inventory as supply concerns decline. 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, Chile, the world’s largest copper producer, is facing its lowest output in 23 years. Its finance minister expects output to fall 7% this year, with only a minor recovery in 2027. Copper prices continue to benefit from strong growth prospects in data center infrastructure, semiconductor manufacturing and battery energy storage systems.
• MCX Copper October is expected to face resistance near Rs1400 level and dip towards Rs1380 level. Only a move below Rs1380 level, it will dip towards Rs1370 level.
• MCX Aluminum October is expected to find support near Rs320 level and rise towards Rs330. MCX Zinc October is likely to find support near Rs420 level and rise towards Rs430 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $95 and rise towards $102 amid escalating tensions in the middle east. Further, UK Maritime Trade Operations said it received a report of a ship being struck near Oman and that a vessel was hit near Iraq. At least 18 vessels have been hit over the past two weeks, according to ship tracking data from Kpler. Meanwhile, Oil transiting through the Strait of Hormuz so far in October was 16.7 million bpd according to Kpler and 15.4 million bpd according to Vortexa, approaching pre-war levels of about 19 million bpd.
• 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 Rs315 level and dip towards Rs300 level.
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
