Natural gas prices are expected to move lower towards Rs295 level as long as it stays below Rs325 - ICICI Direct
Metal’s Outlook
Bullion Outlook
• Spot gold is expected to move lower towards $4200-$4180 levels amid firm dollar and rising US treasury yields. Additionally, oil prices are being maintained at elevated levels by stalled US–Iran negotiations, which has reinforced expectations that further measures will be implemented to curb inflation. Iran’s latest proposal to reopen the Strait of Hormuz has been rejected by the US President, while a firm stance is being maintained. Meanwhile, it was stated by Iran that its conditions for reopening the strategically important waterway would not be softened. Attention will also be focused by investors today on comments from US Fed members, as additional tightening measures to curb inflation are favored by most officials.
• MCX Gold October is expected to slip towards Rs149,500 and Rs148,000 as long as it trades under Rs152,5000 levels.
• MCX Silver December is expected to fall towards Rs230,000 as long as it remains uncer Rs238,000 levels.
Base Metal Outlook
• Copper prices are expected to trade lower due to firm US dollar and growing uncertainty surrounding US-Iran negotiations. However, downside will be limited by robust demand from China and depleting inventory levels on the Shanghai Futures Exchange . Reflecting these acute shortages, the Yangshan premium for imported copper remains elevated near $120 a ton. Additionally, the two-month extension of the existing US-China tariff truce is expected to provide further support to prices.
• MCX Copper October is expected to slip towards Rs1405 as long as it trades under Rs1430.
• MCX Aluminum October is expected to find support near Rs345 level and rise towards Rs354. MCX Zinc October is likely to face hurdle near Rs432 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 after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, raising concerns that the restoration of oil flows through the critical waterway could face further delays. This week will be critical for oil prices, as Iran stated it is waiting for a response from the US regarding its seven-day proposal to reopen the strait. Furthermore, tensions remain high in Saudi Arabia amid ongoing drone attacks by the Houthis
• NYMEX crude oil in November future is expected to move higher towards $97 mark. MCX Crude oil October is expected to hold above Rs8500 and rise towards Rs 9200 level.
• Natural gas prices are expected to move lower towards Rs295 level as long as it stays below Rs325. A quick repair of the Appalachia pipeline leak in West Virginia is expected to ease supply fears and lower natural gas prices.
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