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Daily Commodity Outlook

Bullion Outlook

• MCX gold prices dropped by 1.50% on Friday amid strong economic data from the US

• US Services PMI rose to 49.2 in September 2022 from 43.7 in the previous month, easily beating market expectations of 45.0

• Further, bullion prices were pressurised by a steep rise in US dollar index

• MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar index. It is likely to break the key support level of | 49,180 to continue its downward trend towards the level of | 48,950 in the coming trading session

Base Metal Outlook

• MCX copper prices fell on Friday to its lowest levels in nearly two months amid strong US dollar

• Further, copper prices were pressurised on fears of recession, which may hit metal demand further after aggressive increase in interest rates

• We expect copper prices to trade with a negative bias for the day amid worries that central banks will allow the economy to slip into recession in an attempt to bring inflation under control, which may dent demand for base metals

Energy Outlook

• MCX crude oil prices plunged about 5.6% to an eight-month low on Friday amid fears of rising interest rates tipping major economies into recession, cutting demand for oil

• MCX Natural gas prices dropped almost 6.80% as major cities across the US are passing bans on gas stoves and other appliances that run on natural gas on account of their planetwarming emissions

• We expect MCX natural gas prices to trade with a negative bias for the day amid expectations of weak natural gas demand from the US

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