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Metal’s Outlook

Bullion Outlook

* Spot gold is likely to dip towards the key support at $2530 amid strong dollar and reversal in the US treasury yields. Growing bets of soft landing in the US economy could limit its upside. Meanwhile, downward revision to growth and expectation of rise in unemployment rate could provide support to the bullions. Markets has almost factored in the 50 bps cut and looking for more data to get further clarity. Meanwhile, all focus will now remain on the BOE policy which could bring some volatility to prices. In Comex Gold highest OI concentration on the call side has been observed at 2600 strike, which could act as strong resistance for now.

* MCX Gold Oct is expected to dip towards 72,800 as long as it trades under 73,600. A move below 72,800 would weaken it towards 72,200.

* Spot silver is expected to face the hurdle near $30.60 and move lower towards $29.60. MCX Silver is expected to weaken further towards 87,200 as long as it trades under 89,500.

Base Metal Outlook

* Copper prices are expected to remain under pressure amid lackluster demand and disappointing economic numbers from China. Weakness in the housing industry and industrial production in China would hurt metal prices. Further, strong dollar and higher LME inventories would likely to weigh on the metal prices. On the other hand , increasing hopes of fresh round of stimulus from China to achieve its growth target would provide some support to prices.

* MCX Copper September is expected to face the hurdle near 815 and move lower towards 802. A move below 802 would weaken it towards 798.

* MCX Aluminum is expected to face the resistance at 234 and move towards 229. Only below 229 it would turn weaker.

Energy Outlook

* NYMEX Crude oil is expected to face the hurdle near $72 mark and trade lower amid demand concerns from China. Slowdown in China’s industrial production activity and refinery output to 5-month low indicates lower demand. Further, improved output from US Gulf cost aftermath of the hurricane would also check its upside. Further, downward revision in growth forecast could hurt demand outlook. Meanwhile, Supply disruption from Libya and escalating tension in the Middle Eats could limit its losses. On the upside higher OI concentration observed at $70 call strike which would act as major resistance for price. Similarly $65 would act as strong support for prices.

* MCX Crude oil October is likely face the resistance near 5960 and move lower towards 5700. A move below 5700 would open the downside towards 5600.

* MCX Natural gas September is expected to dip towards 190, as long as it trades under 204.

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