MCX Silver December is expected to rise towards Rs245,000-Rs246,000 levels as long as it trades above Rs238,000 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot gold is expected to hold firm above $4300 per ounce and move higher towards $4450. Correction in crude oil prices on fresh hopes of easing Middle East tension would also ease inflation concerns and support bullion prices. Further, strong ETF inflows and central bank buying would strengthen bullish bets. As per the CFTC data, managed money and non-commercial speculators hold a net long position of approximately 133,116 to 137,060 contracts in COMEX gold futures and options, indicates bullish bets, Meanwhile, higher US treasury yields and a firm dollar could restrict more upside.
• MCX Gold October is expected to rise towards Rs156,500 as long as it stays above Rs152,000 level. A move above Rs156,500 it would rise towards Rs158,000.
• MCX Silver December is expected to rise towards Rs245,000-Rs246,000 levels as long as it trades above Rs238,000.
Base Metal Outlook
• Copper prices are expected to trade firm due to tightening global supply and robust demand from China. In China, the Yangshan premium for imported copper rose to $124 a ton on Friday, the highest level since November 2022. Further, drop in China’s copper production in August also indicates tightness in supply. Meanwhile, increasing inventory levels in LME since last few weeks would ease supply concerns and push the forward curve into contango. This week, focus will also remain on US China trade talks.
• MCX Copper September is expected to rise towards Rs1410- Rs1415 level as long as it hods above Rs1390. Only a move above Rs1415 level, it will turn bullish towards Rs1425.
• MCX Aluminum September is expected to hold support above Rs348 level and rise towards Rs356. MCX Zinc September is likely to hold above Rs424 and rise towards Rs436- Rs440 levels
Energy Outlook
• Crude oil prices are expected to trade lower on hopes that increased diplomatic efforts could help end the Middle East conflict and restore oil supplies from the region. President Donald Trump said that he would "probably" be open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly in New York. He added that he might also meet with other Persian Gulf leaders to discuss Middle Eastern tensions. On the data front, latest CFTC report suggest speculative net longs are still at 4-month highs, any sign of unwinding could trigger profit booking.
• NYMEX crude oil is October future is expected to slip towards $95 per barrel zone as long as it stays under $102 mark. MCX Crude oil October is expected to slip towards Rs9000 as long as it trades under Rs9600 level. A move below Rs 9000 it would slip towards Rs8600
• MCX Natural gas September is expected to slip towards Rs272 level as long as it trades under Rs286 level.
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