MCX Gold December is expected to find support near Rs148,000 and rise towards Rs151,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $4080 and rise towards $4180 level on safe haven demand. Further, expectations of a US rate hike in October eased after data on Friday showed US job growth slowed more than expected in September. As per CME FedWatch Tool, traders now see a 24% probability of a Fed rate hike in October, down from 64% a week ago. Further, decline in crude oil prices may support the bullions. Meanwhile, prices may face pressure on strong dollar and rising U.S treasury yields. Investors will continue to keep an eye on Fed official's comments and key economic data this week for further cues.
• MCX Gold December is expected to find support near Rs148,000 and rise towards Rs151,000 level.
• MCX Silver December is expected to move in a wide range between Rs222,000 and Rs232,000 level. Only a move above Rs232,000, it would rise towards Rs234,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns. Further, a strike at Antofagasta’s Centinela copper mine could begin on October 13 if no agreement is reached in contract talks. Additionally, prices may find support on expectations of loosen monetary policy in October. Stocks in warehouses monitored by Shanghai Futures Exchange have slumped by 79% over the past four months to 38,744 tons, their lowest since January 2024. Meanwhile, sharp upside will be limited on strong dollar and weak demand from China. Traders are awaiting the return of top metals consumer China from a week-long national holiday.
• MCX Copper October is expected to find support near Rs1400 level and rise towards Rs1416 level. Only a move above Rs1416 level, it will rise towards Rs1420 level.
• MCX Aluminum October is expected to find support near Rs335 level and rise towards Rs344. MCX Zinc October is likely to find support near Rs408 level and rise towards Rs418 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $94 and dip towards $87 on easing supply concerns in the middle east. Further, Saudi Aramco lowered the price of its Arab Light crude to Asian buyers by $5 a barrel below a regional benchmark for November delivery, a wider cut than expectations of $5 a barrel increase. Additionally, Saudi Arabia said crude supplies through its East-West pipeline had risen to 80% of capacity. Meanwhile, prices may find cushion as Saudi-backed Yemeni government forces launched a full-scale military attack to recapture Houthi-held territory in Yemen.
• MCX Crude oil October is expected to face resistance near Rs9000 and dip towards Rs8400 level.
• MCX Natural gas October is expected to find support near Rs290 level and rise towards Rs302 level.
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