Natural gas price is expected to move lower towards Rs290 level as long as it stays below Rs300 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot gold is expected to face resistance near the $4,200 level and slip toward $4,100, pressured by a firm US dollar and rising Treasury yields. Concerns over persistent, energy-driven inflation and higher bond yields are likely to weigh on prices. Market focus is now shifting toward key economic data from the US. Expectations of steady growth in US private payroll numbers and strong GDP data likely to support prospects for further rate hikes. Moreover, attention remains on the Fed’s preferred inflation metric, the Core PCE Price Index. Any signs of rising inflation will strengthen the case for rate hikes and exert further downward pressure on gold prices
• MCX Gold December is expected to face hurdle near Rs151,500 and slip towards Rs148,000-Rs147,000 levels.
• MCX Silver December is expected to consolidate between Rs226,000 and Rs233,000 levels. Only a move below Rs226,000, it would correct towards Rs223,000 mark
Base Metal Outlook
• Copper prices are expected to find support and trade higher, driven by tight supplies and robust demand from China. Depleting inventory levels in both the Shanghai Futures Exchange and LME are also providing strong support. Additionally, China’s Yangshan copper premium recently reached $124 per metric ton, indicating a strong appetite for refined copper imports. This positive momentum is further reinforced by betterthan-expected economic data from China; the official manufacturing PMI rose to 50.10 in September, marking the first expansion in factory activity since June and signaling renewed demand growth. Meanwhile, the market focus will remain on upcoming US economic data, which is expected to introduce further price volatility.
• MCX Copper October is expected to rise towards Rs1420 as long as it trades above Rs1392.
• MCX Aluminum October is expected to find support near Rs340 level and rise towards Rs348. MCX Zinc October is likely to rise towards Rs428 as long as it holds above Rs414 levels.
Energy Outlook
• Crude oil prices are expected to trade lower as improving Middle Eastern oil flows ease supply concerns. Recent data shows that Gulf region exports have recovered to around 17.5 million barrels per day over the last ten days. This recovery follows Saudi Arabia’s partial resumption of crude exports through its East-West pipeline, alongside steady covert shipments through the Strait of Hormuz. Additionally, a planned release of 40 million barrels from the Strategic Petroleum Reserve (SPR) and expectations of a 1-million-barrel increase in U.S. commercial inventories last week are expected to weigh further on prices.
• NYMEX crude oil in November future is expected to move lower towards $86 mark as long as it trades under $91. MCX Crude oil October is expected to move towards Rs8500 as long as it remains under Rs9000 level.
• Natural gas price is expected to move lower towards Rs290 level as long as it stays below Rs300.
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