MCX Natural gas October is expected to face resistance near Rs320 level and dip towards Rs300 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is expected to move higher towards $4200 as long as it holds above $4070 on correction in the US dollar and fall in U.S treasury yields. Dovish comments from the Fed officials have strengthened the bets of no rate hike in the October meeting. As per the CME Fed watch tool October rate hike probability stayed near 25%, despite higher US inflation data. Further, prices may find support on safe-haven demand, strong ETF inflows and central bank buying. Meanwhile, investors would look out for remarks from Fed Chair Kevin Warsh and economic data for further cues. Today’s focus will remain on US producer prices index and retail sales data, which could bring further volatility in prices
• MCX Gold December is expected to hold above Rs145,000 and rise towards Rs148,500 level. A move above Rs148,500 it would rise towards Rs150,500.
• MCX Silver December is expected to move in a wide range between Rs205,000 and Rs215,000 level. Only a move below Rs205,000, it would dip towards Rs200,000 level.
Base Metal Outlook
• Copper prices are expected to trade higher amid supply concerns and improving demand from China. Further, Europe’s top producer, Aurubis AG, stated that huge shipments of metal to US are significantly reducing the availability of metal elsewhere. This has been driven by concerns that the US may place tariffs on refined metal imports. Meanwhile, Workers at BHP Group’s Escondida in Chile are voting on a tentative wage agreement that would avert a strike at the world’s biggest copper mine. The union temporarily suspended the start of a strike after overnight talks produced a preliminary deal that improves benefits
• MCX Copper October is expected to find support near Rs1404 level and rise towards Rs1414 level. Only a move above Rs1414 level, it will rise towards Rs1420 level.
• MCX Aluminum October is expected to face resistance near Rs325 level and dip towards Rs315. MCX Zinc October is likely to face resistance near Rs420 level and dip towards Rs410 level.
Energy Outlook
• NYMEX crude oil is expected to find support near $92 and rise towards $96 after a container ship sank in the Strait of Hormuz following a strike by unidentified projectiles. Further, Russia accused Ukraine of attacking two oil refineries in the Saratov and Ryazan regions. Additionally, Iranian attacks on tankers transiting the Strait of Hormuz showed no signs of easing. Ship-tracking data suggest crude exports slowed in early October and weakened further in second week of the month, while tanker shortages and elevated freight rates are increasingly disrupting regional trade flows.
• MCX Crude oil November is expected to find support near Rs8800 and rise towards Rs9200 level.
• MCX Natural gas October is expected to face resistance near Rs320 level and dip towards Rs300 level.
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