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Bullion Outlook

MCX Gold vs. Silver

• Spot Gold is expected to rise towards $4200 as long as it holds above $4070 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 are now pricing in about a 29% chance of a rate hike later this month. Further, prices may find support on safe-haven demand, strong ETF inflows and central bank buying. Meanwhile, investors would look out for remarks from Fed Chair Kevin Warsh and economic data for further cues.

• MCX Gold December is expected to find support near Rs146,000 and rise towards Rs149,000 level.

• MCX Silver December is expected to move higher towards Rs216,000, with strong support at Rs205,000 level. Only a move above Rs216,000, it would rise towards Rs220,000 level.

Base Metal Outlook

• Copper prices are expected to remain under pressure on easing concerns over immediate supply disruption from Chile. BHP’s Escondida mine in Chile approved a new union contract and removing the threat of a stoppage at the world’s largest copper mine. Meanwhile, 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.

• MCX Copper October is expected to face resistance near Rs1406 level and dip towards Rs1390 level. Only a move below Rs1390 level, it will dip towards Rs1386 level.

• MCX Aluminum October is expected to face resistance near Rs326 level and dip towards Rs315. MCX Zinc October is likely to face resistance near Rs420 level and dip towards Rs410 level.

Energy Outlook

• NYMEX crude oil is expected to find support near $94 and rise towards $100 amid escalating tensions in the middle east. Further, Ukrainian President Volodymyr Zelenskyy ordered attacks on Russian oil refineries to resume in a spiraling confrontation with Donald Trump over restrictions on US intelligence assistance. Oil tankers with capacity of 37mbbl have stopped or changed course when sailing towards the coast of UAE and Oman, according to Bloomberg ship tracking data. Ship-tracking data suggest crude exports slowed in early October and weakened further in second week of the month, while tanker shortages and elevated freight rates are increasingly disrupting regional trade flows.

• MCX Crude oil November is expected to find support near Rs8900 and rise towards Rs9400 level.

• MCX Natural gas October is expected to find support near Rs296 level and rise towards Rs310 level.

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