As we step into November 2025, commodity investors are bracing for a month characterized by volatility but also rich opportunities. According to the Motilal Oswal Financial Services Ltd (MOFSL) Monthly Commodities Canvas Report, global cues continue to exert significant influence on prices across both metals and energy markets.
Precious Metals: A Cooling Period
The report indicates that precious metals have experienced a cooling phase after reaching record peaks. Gold prices fell by 0.5% in the last week of October but still managed to gain 3.4% over the month and an impressive 57% year-on-year, closing at ₹1,21,284 per 10 grams on October 31. Internationally, gold ended at $4,002 per ounce, marking a 51.8% increase year-on-year.
Silver also saw a slight dip, easing 1% weekly but logging a 4.3% monthly gain and a remarkable 68% annual return, closing at ₹1,48,399 per kilogram in India and $48.65 per ounce globally. The report attributes this correction in precious metals to profit-taking after an extended rally, a stronger dollar, and reduced expectations of an immediate Federal Reserve rate cut.
Despite these fluctuations, geopolitical tensions and the ongoing U.S. government shutdown continue to lend support to safe-haven assets. MOFSL maintains a bullish outlook on gold, suggesting a trading range between ₹1,16,000 and ₹1,24,000, with ₹1,16,000 identified as a key accumulation zone if prices hold above it weekly. Silver is expected to remain range-bound between ₹1,39,000 and ₹1,54,000, with a potential breakout toward ₹1,63,000 on strength.
Base Metals: Copper and Zinc Lead the Charge
In the realm of base metals, MOFSL sees a bullish setup, particularly for copper and zinc, driven by tightening supply and robust industrial demand. Copper has rallied above ₹1,000 per kg, marking a 6.1% monthly gain and a substantial 26.5% yearly increase. LME inventories have plummeted by nearly 50%, while SHFE stocks are down 43% year-to-date. The global refined copper market posted a smaller surplus of 147,000 tons in 2025, down sharply from 477,000 tons last year.
MOFSL expects copper to find strong support around ₹977, with upside targets of ₹1,025 to ₹1,055. Zinc prices also rose by 4.3% over the month to ₹300.3 per kg, bolstered by falling inventories and refinery shutdowns in Japan, Italy, and the U.S. The firm projects near-term upside toward ₹325 to ₹330, provided prices remain above ₹285.
Aluminium has climbed 4.7% in a month and nearly 13% year-on-year to ₹271.9 per kg, supported by easing U.S.-China tensions and refinery outages in Australia and Iceland. MOFSL expects aluminium to remain range-bound between ₹267 and ₹285, forming a steady “higher-highs and higher-lows” pattern on the charts.
Energy: Positive Outlook for Oil and Gas
Turning to the energy sector, crude oil prices dipped 2.6% in October to ₹5,421 per barrel. However, MOFSL retains a bullish stance for November, expecting a rally toward ₹5,600. This optimism is attributed to OPEC+’s limited output hikes, a steady demand outlook, and persistent geopolitical risks.
Natural gas prices rose 3.1% last month and 21% year-on-year, closing at ₹365.4 per mmBtu. Seasonal winter demand and rising LNG exports are anticipated to drive prices higher. MOFSL recommends “buying on dips” near ₹360, with upside targets of ₹405, while maintaining a bullish outlook unless prices fall below ₹335.
Strategic Recommendations for Investors
MOFSL advises investors to adopt a selective and tactical approach in the current market landscape. While gold and silver may experience consolidation after steep rallies, base metals such as copper and zinc present strong risk-reward opportunities amid tight supply conditions.
“Commodities are entering a high-volatility phase influenced by macroeconomic events, Fed policy decisions, and global trade negotiations,” the report states. Investors are encouraged to stay alert, closely monitor range levels, and utilize dips for accumulation in fundamentally strong commodities.
Conclusion
As November unfolds, the commodity market presents a complex yet opportunity-rich environment. With shifting dynamics in precious metals, a bullish outlook for base metals, and a cautiously optimistic energy sector, investors have a range of strategies to consider. Staying informed and adaptable will be key to navigating the volatility ahead.
For more insights and updates, Zee Business remains a preferred source for commodity market information.
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