IGI Logo

Metal’s Outlook

Bullion Outlook

• Spot gold is likely to hold the support near $1850 levels and move back towards $1880 levels amid retreat in dollar and US treasury yields across curve and fears over US partial government shutdown as disagreement over federal spending escalates. Further, Federal Reserve bank of Richmond President Thomas said its unclear whether more monetary policy changes will be needed in coming months. Additionally, market will remain cautious ahead of PCE index data, Fed’s preferred inflation gauge scheduled today to get cues on interest rate outlook.

• MCX Gold prices is likely to move north towards 58,200 level as long as it trades above the support level of 57,700 levels

• MCX Silver is expected to follow gold prices and move higher towards 71,500 level as long as it sustains above 70,000 level 

Base Metal Outlook

• Copper prices are expected to trade with positive bias amid weak dollar, expectation of better economic data from key economies and improved global market sentiments. Market sentiments improved as Oil prices fell and US treasury yields pulled back from their highest levels in 16 years. Moreover, expectation of better economic figures from China would be supportive for prices. China’s Manufacturing PMI data is likely to show that activity in sector expanded in September after contracting for 5 consecutive month.

• MCX Copper may rise further towards 724 levels as long as it trades above 714 levels

• MCX aluminium is expected to move upward towards 209 level as long as it stays above 206 level

Energy Outlook

• NYMEX Crude oil is expected to move back towards $93 levels amid weak dollar and improved global market sentiments. Further, GDP data from US showed economy maintained fairly strong pace of growth in Q2 2023 and appears to have gathered momentum this quarter. Moreover, China’s week-long Golden week holiday would be supportive for the prices. Additionally, China’s factory activity likely steadied in September, signalling stabilisation has begun in world’s second largest economy

• MCX Crude oil is likely to hold the support near 7530 level and rise back towards 7700 levels

• MCX Natural gas is expected to move upwards towards 250 level as long as it stays above 235 level amid outlook for colder weather. However, gains may be limited as weekly EIA inventoriesrose 90bcf 

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

SEBI Registration number INZ000183631