MCX Gold December is expected to find support near Rs142,000 and rise towards Rs145,500 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to remain volatile and hold support near $3980 ahead of U.S Fed Reserve meeting. Further, dip in crude oil prices has eased inflation concerns and may persuade Fed to loosen monetary policy. Additionally, softening of U.S treasury yields, strong ETF inflows and Central Bank buying may help prices to move upside. As per CME FedWatch Tool, Markets are pricing in 82% chance that the Federal Reserve will raise interest rates in December. Meanwhile, Investors will keep an eye on today’s FOMC meeting and US Personal Consumption Expenditures data this week for further cues.
• MCX Gold December is expected to find support near Rs142,000 and rise towards Rs145,500 level.
• MCX Silver December is expected to move in a wide range between Rs190,000 and Rs200,000 level. Only a move above Rs200,000, it would turn bullish and rise towards Rs205,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns and strong demand from China. Further, the Yangshan premium, a gauge of demand for imported copper, rose to its highest level since 2017. Additionally, a shortage of copper concentrate in China is forcing smelters to deepen production cuts ahead of negotiations on next year’s supply of the raw material. Peru’s Antamina, one of the country’s biggest copper mines, had suspended operations as a precaution after a worker died in an accident at its Yanacancha site. Meanwhile, sharp upside will be limited on strong dollar.
• MCX Copper November is expected to find support near Rs1390 level and rise towards Rs1410 level. Only a move above Rs1410 level, it will rise towards Rs1415 level.
• MCX Aluminum November is expected to find support near Rs326 level and rise towards Rs340. MCX Zinc November is likely to find support near Rs410 level and rise towards Rs425 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $98 and rise towards $104 after an attack on a refinery in Saudi Arabia renewed concerns around the risks to supply in the Middle East. Further, supply risks continue to increase, with Saudi Arabia announcing that it had contained a fire near its biggest export terminal at Ras Tanura following an attack on the region. Meanwhile, Iran said it is flexible on a proposal to reopen the Strait of Hormuz in exchange for lifting the US blockade in seven days. As per media reports, OPEC+ oil-producing countries are expected to keep their December oil output targets steady on Sunday.
• MCX Crude oil November is expected to find support near Rs9300 and rise towards Rs9700 level. • MCX Natural gas November is expected to find support near Rs280 level and rise towards Rs296 level.
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