Natural gas price is expected to move lower towards Rs295 level as long as it stays below Rs312 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot gold is expected to face resistance near $4,180 level and slip toward $4,060, pressured by a firm US dollar and rising Treasury yields. Meanwhile, persistent uncertainty surrounding US-Iran negotiations is keeping oil prices elevated, increasing pressure on central banks to tighten monetary policy to curb inflation. Market focus is now shifting toward upcoming comments from officials of both nations. Any positive signs pointing toward an end to the seven-month conflict could trigger further volatility in prices. Additionally, investors are closely watching statements from US Federal Reserve members today, as most officials continue to favor tightening measures to combat inflation.
• MCX Gold October is expected to face hurdle near Rs149,000 and slip towards Rs146,000-Rs145,000 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 face downward pressure due to firm U.S. dollar, stalled U.S.-Iran discussions and softer economic data from China. However, sharp fall in prices may be cushioned amid depleting inventory levels on the Shanghai Futures Exchange and operation halt in BHP’s Escondida copper mine in Chile. Meanwhile, focus will also remain on developments from US and Iran discussion which could bring further volatility.
• MCX Copper October is expected to slip towards Rs1395 as long as it trades under Rs1418.
• MCX Aluminum October is expected to find support near Rs345 level and rise towards Rs354. MCX Zinc October is likely to face hurdle near Rs428 and fall towards Rs410 levels.
Energy Outlook
• Crude oil prices are expected to trade higher amid ongoing uncertainty surrounding US-Iran negotiations. NYMEX crude oil is hovering near $93 per barrel as recent US-Iran talks in New York produced limited progress, with President Donald Trump rejecting Tehran’s latest proposal to reopen the strategic waterway. However, Trump is reportedly considering sanctions relief for Iran and unfreezing of funds if meaningful progress is made towards nuclear agreement. Meanwhile, improved oil flows from Saudi Arabia would limit any major up move in oil prices.
• NYMEX crude oil in November future is expected to move higher towards $97 mark as long as it holds above $91. MCX Crude oil October is expected to hold above Rs8700 and rise towards Rs9200 level.
• Natural gas price is expected to move lower towards Rs295 level as long as it stays below Rs312. Expectation of quick repair of the Appalachia pipeline leak in West Virginia is expected to ease supply fears
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