Metals & Energy Outlook (October 7th, 2024)

Fundamental Metals & Energy Outlook (October 7th, 2024)

The current outlook for metals and energy markets suggests a varied performance across different commodities. The focus is on gold, silver, base metals, crude oil, and natural gas. Here are the key highlights:

Gold and Silver

• Gold: Expected to trade within the range of ₹76,000 – ₹76,400 with a sideways to mixed bias. The metal eased on Monday due to bets firming for a smaller U.S. rate cut in November, following a strong U.S. jobs report.
• Silver: Trading between ₹92,800 – ₹93,600, also with a sideways to mixed bias. The sentiment remains cautious as market participants await more inflation data and comments from Federal Reserve officials.

Base Metals

• Copper: Expected to trade in the range of ₹852 – ₹859, with a sideways to bullish bias. The overall market mood for base metals is positive, driven by stronger-than-expected U.S. job growth in September.
• Zinc: Witnessing a buying trend with support near ₹286 and resistance around ₹290.
• Lead: Expected to have a bullish trend, with trading expected in the range of ₹185 – ₹188.
• Aluminum: Trading in the range of ₹241 – ₹244 with a bullish bias.

Energy Markets

• Crude Oil: May witness mixed movements and is expected to trade in the range of ₹6,260 – ₹6,370. The price fell in Asian markets after Middle East tensions caused a sharp rise last week.
• Natural Gas: Expected to trade within ₹236 – ₹243 with a mixed bias.

The metals and energy markets are expected to trade in varied ranges, with several sectors like base metals showing bullish trends, while energy markets remain cautious due to geopolitical tensions.