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Metal’s Outlook

Bullion Outlook

* Spot Gold is likely to trade with the positive bias and rise towards $4180 level on weak dollar and decline in US treasury yields across curve. Further, prices may rally as dovish comments from Fed officials along with disappointing economic data from U.S. heightened expectation of another rate cut in December meeting. Fed Governor Stephen Miran said that the job market was deteriorating because of where the central bank has set its short-term interest rate target. As per CME FedWatch tool traders are now pricing almost 85% chance of a rate cut in December, up from 84% a day ago and about 50% a week ago. Further, prices may rally as White House National Economic Council Director Kevin Hassett emerged as the frontrunner to serve as the next Fed chair. Investors may further boost bets on lower rates next year as he is seen more dovish, caring out aggressive reductions in borrowing costs. MCX Gold Dec is expected to rise towards Rs 126,300 level as long as it stays above Rs 124,000 level.

* MCX Silver Dec is expected to rise towards Rs 158,000-Rs 159,000 level as long as it stays above Rs153,500 level

Base Metal Outlook

* Copper prices are expected to trade with a positive bias amid weak dollar and rise in risk appetite in the global markets. Further, prices may rally on growing prospects of a December U.S rate cut following dovish signals from central bank officials and softer than expected economic data from U.S. Moreover, prices may move north on supply concerns after Freeport Indonesia said it has cut its 2026 production plans for its flagship Grasberg mine, down to 478,000 tons of copper cathode from 700,000 tons expected earlier. Meanwhile, Yangshan copper premium, a gauge of Chinese appetite for imported copper fell yesterday and returned to $32 a ton, down from a peak of above $100 in early May this year.

* MCX Copper Dec is expected to rise towards Rs 1020 level as long as it stays above Rs 1005 level.

* MCX Aluminum Dec is expected to rise towards Rs 270 level as long as it stays above Rs 267 level. MCX Zinc Nov is likely to face stiff resistance near Rs 300 level and slip towards Rs 295 level

Energy Outlook

* Crude oil is likely to trade with negative bias and dip towards $57 level on signs of positive progress in peace talk between Ukraine and Russia. Investors are of opinion that a peace deal may increase the chances of lifting sanctions on Russian crude exports adding more supply at a time of expectation of supply glut next year. Kyiv’s national security chief said Ukrainian President could visit the U.S. in the next few days to finalize a deal to end the war. Further, weaker than expected economic data from US and China has raised concerns over economic growth in 2 largest economies and demand outlook. Moreover, API figures showed rise in fuel stocks, signaling weak demand

* MCX Crude oil Dec is likely to slip towards Rs 5100-Rs 5050 level as long as it stays below Rs 5300 level.

* MCX Natural gas Dec is expected to slip towards Rs 388 level as long as it stays below Rs 410 level.

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