MCX Gold December is expected to find support near Rs142,000 and rise towards Rs146,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4050 and rise towards $4200 on weak dollar and softening of U.S treasury yields. Further, sharp dip in crude oil prices has eased inflation concerns and may persuade Fed to loosen monetary policy. Further, Central banks stepped up gold buying in the third quarter to its fastest pace since late 2024. As per CME FedWatch Tool, traders currently see about an 83% chance that Fed will raise interest rates in December. Meanwhile, investors will keep an eye on today’s Bank of England’s monetary policy meeting and US nonfarm payrolls report later this week for further clues on the monetary policy outlook.
• MCX Gold December is expected to find support near Rs142,000 and rise towards Rs146,000 level.
• MCX Silver December is expected to move in a wide range between Rs185,000 and Rs195,000 level. Only a move above Rs195,000, it would rise towards Rs204,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher on weak dollar, supply concerns and strong demand from China. Further, continuing signs of tight physical supply in China may weigh on prices. Meanwhile, sharp upside will be limited as market contemplated what a Democratcontrolled House means for US data centre spending, which has been a key driver of copper demand. Additionally, Democrats victory in both chambers reduced expectations for refined-copper tariffs. Copper inventories in LME registered warehouses rose to 309,650 tons, their highest since mid-July.
• MCX Copper November is expected to find support near Rs1360 level and rise towards Rs1375 level. Only a move above Rs1375 level, it will rise towards Rs1380 level.
• MCX Aluminum November is expected to face resistance near Rs330 level and dip towards Rs325. MCX Zinc November is likely to find support near Rs410 level and rise towards Rs420 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $94 and dip towards $85 as market expectations of an end to the Middle East conflict rose following the Democrats’ sweep in the US midterm elections. Further, Senate Minority Leader Schumer pledged a quick end to the Iran war, Democrats retaking of Congress in the US midterm elections has fueled speculation that US may try to end the US-Iran conflict sooner rather than later. Additionally, combined exports from Saudi Arabia, United Arab Emirates, Iraq, and Kuwait climbed 10% to 15.53 million bpd in October, roughly in line with levels shipped at the start of the year, according to tanker-tracking data compiled by Bloomberg.
• MCX Crude oil November is expected to face resistance near Rs8600 and dip towards Rs8000 level.
• MCX Natural gas November is expected to find support near Rs275 level and rise towards Rs288 level.
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