MCX Silver Dec is expected to face hurdle near Rs 149,500 level and correct towards Rs 144,000 level - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot Gold is hovering lower today after last week’s decline. It is expected to move in the band of $4050 and $4150 per ounce ahead of key US FOMC meeting this week. Meanwhile, increasing bets of trade deal between US and China would ease safe haven appeal in the precious metal and bring correction in it. Top negotiators from both sides had reached a preliminary consensus after two days of discussions in Malaysia. Meanwhile, focus will shift towards this week key central bank policies from the US Fed, ECB and BOJ. US Fed is likely to lower the rates by 25 bps this week. In addition to that, geopolitical tension would also limit the downside in bullion prices.
• Spot gold is likely to face hurdle near $4150 and move lower towards $4050. MCX Gold December is expected to face resistance at Rs 124,500 level and move back towards Rs 121,500 level.
• MCX Silver Dec is expected to face hurdle near Rs 149,500 level and correct towards Rs 144,000 level.
Base Metal Outlook
• Copper prices are expected to hold its ground and move higher amid optimism over US-China trade deal and persistent supply concerns. Disruption in major mines could hurt global supplies and support the red metal to trade higher. Top official from China and US has set the framework of a trade deal for both the President’s to finalize the deal, which will pause steeper US tariffs and China’s planned export controls on rare earths. Additionally, depleting inventory levels in LME and expectation of fresh round of stimulus from China would support the bullishness in the metal.
• MCX Copper November is expected to hold support near Rs 995 and move back towards Rs 1025level.
• MCX Aluminum November is expected to rise towards Rs 272 level as long as it stays above Rs 267 level.
• MCX Zinc November looks to rise towards Rs 304 as long as it holds key support at Rs 294. Depleting inventory levels in LME would likely to support prices.
Energy Outlook
• NYMEX Crude oil expected to hold support near $60 per barrel and move higher towards $63 per barrel mark on optimism over US-China trade deal. Easing tariffs and export curbs between two top oil consuming nation would help prices to hold its gains. Further, supply concerns from Russia due to recent US sanctions on Russia’s top oil firms would hurt almost one third of oil flows from Russia. Additionally, EU’s sanction could hurt global oil supplies and support oil prices to trade higher. Meanwhile, gains in prices could be restricted on higher OPEC supplies and easing middle East tension.
• MCX Crude oil November is likely to hold the support near Rs 5280 and move towards Rs 5550. A strong put base near $60 indicates NYMEX crude to hold support.
• NYMEX Natural Gas is expected to move higher on colder weather forecast. MCX Natural gas November future is expected to move towards Rs 358 as long as it stay above Rs 340 level.
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