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Metal’s Outlook

Bullion Outlook

• Spot gold is likely to find support near $1900 and rise towards $1950 amid increasing geopolitical risk in the Middle East. The safe haven buying in the metal would support the trend to remain bullish. Further, increasing probability of Fed pause in its next meeting would also support the bullions to hold its gains. The CME Fed-watch tool indicates more than 93% probability that the Fed will hold the rates unchanged in November.

• MCX Gold prices is likely to rise towards 59900, as long as it holds the support 58800.

• MCX Silver is expected to hold the support near 70200 and extend its gains towards 72800.

Base Metal Outlook

• Copper prices are expected to remain under pressure amid strong dollar and higher inventories. The weakness in the Chinese economic numbers would also weigh on the metal prices. Further, lingering concerns over Chinese real estate market despite stimulus from the Government would also limit the upside in the red metal.

• MCX Copper is could face the hurdle near 705 and weaken towards 695. Only close below 695, it would slide towards 690.

• MCX aluminium is expected to weaken towards 202, as long as it trades 190 under 205.50 level.

Energy Outlook

• NYMEX Crude oil is expected to find support near the $85 mark and rise towards $89 level amid rising uncertainty in the Middle east. Prices are likely to remain highly volatile amid expectation that the conflict could cause disruption in supply from the world’s biggest oil producing region. But, higher production and increasing inventory levels in US could check the upside in oil rally.

• MCX Crude oil November is likely to rise towards 7280, as long as it holds above 7050.

• MCX Natural gas is expected to weaken towards 260, as long as it trades under 274. The forecast of above normal temperature in US would restrict the upside in price.

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