MCX Natural gas November is expected to face resistance near Rs280 level and dip towards Rs266 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to find support near $3890 and rise towards $4000 on weak dollar and softening of U.S treasury yields. Further, sharp dip in crude oil prices has eased inflation concerns and may persuade Fed to loosen monetary policy. Further, Central banks stepped up gold buying in the third quarter to its fastest pace since late 2024. Inflows into goldbacked exchange-traded funds rose by 211 tons, lifting holdings to a record 4,256 tons and generating $31 billion in quarterly inflows. Meanwhile, attention is now shifting to US midterm elections to assess the potential impact on fiscal policy, geopolitics and broader market sentiment.
• MCX Gold December is expected to find support near Rs138,000 and rise towards Rs141,000 level.
• MCX Silver December is expected to move in a wide range between Rs176,000 and Rs185,000 level. Only a move above Rs185,000, it would rise towards Rs190,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher on supply concerns and strong demand from China. Further, continuing signs of tight physical supply in China may weigh on prices. Additionally, Chile’s copper output sank to its lowest level in more than two decades in the last quarter. State copper commission, Cochilco, cut its 2027 production forecast to 5.08mt, implying a rebound of 3%. Meanwhile, concerns are mounting that the boom in investment into data centres and energy-related infrastructure may subsequently fall as capital becomes more difficult to obtain for AI companies. Copper inventories in LME registered warehouses rose to 309,650 tons, their highest since mid-July.
• MCX Copper November is expected to find support near Rs1350 level and rise towards Rs1375 level. Only a move above Rs1375 level, it will rise towards Rs1380 level.
• MCX Aluminum November is expected to face resistance near Rs330 level and dip towards Rs325. MCX Zinc November is likely to find support near Rs406 level and rise towards Rs416 level.
Energy Outlook
• NYMEX crude oil is expected to face resistance near $98 and dip towards $94 as U.S and Iran explored a diplomatic solution to the eight-month conflict. Further, as per media reports, US and Iran are studying proposals as part of ideas aimed at paving the way for a peace agreement. Additionally, combined exports from Saudi Arabia, United Arab Emirates, Iraq, and Kuwait climbed 10% to 15.53 million bpd in October, roughly in line with levels shipped at the start of the year, according to tankertracking data compiled by Bloomberg. Meanwhile, reports of US attacks on Iran’s Qesham Island could bring uncertainty and limit downside in oil prices.
• MCX Crude oil November is expected to face resistance near Rs9400 and dip towards Rs8800 level.
• MCX Natural gas November is expected to face resistance near Rs280 level and dip towards Rs266 level.
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