MCX Natural gas October is expected to slip towards Rs280 level as long as it trades under Rs296 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot gold is expected to find the floor near $4300 per ounce and move higher towards $4400. Correction in crude oil prices on fresh hopes of easing Middle East tension would ease inflation and rate hike concerns. Further, strong ETF inflows, central bank buying and rising geopolitical risks along with fiscal concerns would provide strong support to bullions. Meanwhile, firm dollar and hawkish comments from the Fed member could restrict its upside. Today, focus will remain on the comments from 3 Fed members, which could bring further volatility in the late session.
• MCX Gold October is expected to rise towards Rs155,000 as long as it stays above Rs152,000 level. A move above Rs155,000 it would rise towards Rs158,000.
• MCX Silver December is expected to rise towards Rs244,000-Rs245,000 levels as long as it trades above Rs237,000.
Base Metal Outlook
• Copper prices are expected to trade firm, driven by persistent supply concerns and robust demand from China. Between October and November, multiple Chinese refineries are scheduled for planned maintenance, which will cap any significant increase in metal availability. Additionally, port congestion in Shanghai continues to fuel uncertainty regarding the pace of imported supplies. Reflecting this tight market, the Yangshan premium for imported copper remains elevated near $120 a ton. Moving forward, market focus will stay on the US-China trade talks, where any positive outcome is expected to provide further upward support for prices.
• MCX Copper September is expected to rise towards Rs 1430 level as long as it hods above Rs1400.
• MCX Aluminum September is expected to find support near Rs347 level and rise towards Rs354. MCX Zinc September is likely to hold above Rs430 and rise towards Rs438- Rs440 levels.
Energy Outlook
• Crude oil prices are expected to slide amid renewed hopes that intensified diplomatic efforts could resolve the Middle East conflict and stabilize regional supplies. Later today, U.S. President Donald Trump will address the UN General Assembly in New York, with a potential sideline meeting scheduled with Iranian President Masoud Pezeshkian. Trump is also set to hold talks with Chinese President Xi Jinping and other Gulf leaders this week. Meanwhile, supply anxieties eased as Saudi Arabia successfully routed 2.9 million barrels of crude per day through the Strait of Hormuz over the last six days.
• NYMEX crude oil is October future is expected to slip towards $93 per barrel zone as long as it stays under $98 mark. MCX Crude oil October is expected to slip towards Rs8600, provided it trade under Rs9200 level.
• MCX Natural gas October is expected to slip towards Rs280 level as long as it trades under Rs296 level.
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