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Metal’s Outlook

Bullion Outlook

* Spot gold is expected to hold support near $2620 and move back towards $2670 amid safe haven demand. Escalating tension in the Middle East would provide support to the bullions. Meanwhile, better than expected economic numbers from US could limit its upside. Forecast of rise in ISM service PMI data and steady jobless claims report would check any major upside in the yellow metal. A strong put base near $2600 would act as key support for the yellow metal. Similarly higher OI concentration at $2700 call strike would act as immediate resistance for price.

* MCX Gold December is expected to hold the key support at 75600 and move higher towards 76,600. Formation a bullish engulfing pattern on the daily charts would support the yellow metal to trade higher.

* MCX Silver December is expected to hold the 10 day EMA support near 90,800 and move towards 93,200. Only close below 90,000 it would slide towards 89,200.

Base Metal Outlook

* Copper prices are expected to trade with bullish bias amid hopes of demand improvement Further hopes of lower interest rates would also increase demand hopes. Meanwhile, increasing supplies from major mines in the world may limit any major up move in the metal. Latest report from the Internation Copper Study group indicated surplus of copper in this year which may hurt the bullish outlook of the red metal.

* MCX Copper October is expected to hold the support near 848 and move back towards 862. Only a move above 862 it would open the doors towards 868.

* MCX Aluminum is expected to slip towards 234, as long as it stays under 242. Formation of bearish engulfing pattern on the daily charts would limit its upside. Above 242, it would negate the pattern and open the doors towards 245.

Energy Outlook

* NYMEX Crude oil is expected to move higher amid supply concerns as growing tension in the Middle East would likely to disrupt supply from the major suppliers. Meanwhile, higher supplies from US and enough capacity from OPEC to compensate for a full loss of Iranian supply would limit its upside. Further, increasing OI in ATM and OTM put strikes indicates prices may find strong support near the $68 mark. Further, focus will remain key economic numbers from US and Europe which could bring further clarity in price trend.

* MCX Crude oil October is expected to hold the support of 5800 and move towards 6070. A move above 6070 would open the doors towards 6180.

* MCX Natural gas October is expected to hold the support near 237 and rise towards 250. Above 250 it would rally towards 258. Supply disruption from the Gulf of Mexico would provide support to prices.

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