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Metal’s Outlook

Bullion Outlook

• Spot gold is likely rise back towards $2005 levels as long as its sustains above $1980 level amid weakness in dollar and decline in US treasury yields. Yields are correcting from their multi-year high as fresh economic data from US reinforced expectations that US Fed will again hold rates steady in December meeting and is done with its hiking interest rates campaign. Further, demand for safe haven may increase on fear that conflict between Hamas and Israel is escalating and may spill over and trigger another multi-front war in the region.

• MCX Gold prices is likely to move north towards 61,350 level as long as it trades above the support level of 60,800 levels

• MCX Silver is expected to rise further till 73,000 level as long as it sustains above 71,500 level.

Base Metal Outlook

• Copper prices are expected to trade with positive bias amid weak dollar and rise in risk appetite in the Asian markets. Market sentiments improved on bets that Fed and ECB are done with their rate hike campaign. Meanwhile, sharp upside may be capped on higher metal inventories in exchange-registered warehouses. copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 11.3% in previous week.

• MCX Copper is likely to rise towards 715 level, as long as it stays above 705 level. A move above 715 would open the doors towards 720 levels.

• MCX aluminium is expected to rise back towards near 208 level as long as it stays above 206.0 level

Energy Outlook

• NYMEX Crude oil is expected to hold the support near $80.0 and rise back towards $83.0 level amid weakness in dollar and on worries over tight supply after top exporters Saudi Arabia and Russia said they would stick to extra voluntary oil output cuts until the end of the year. Further, investors fear over supply disruption amid escalating tensions in Middle East. Investors are worried that the conflict will spread into wider region as Israel has rejected growing calls for ceasefire in Gaza and continued with intense bombardment

• MCX Crude oil is likely to hold support near 6650 levels and move north towards 6900 levels.

• MCX Natural gas is expected to dive towards 275 level as long as it trades below 290 level

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