IGI Logo

Daily Commodity Outlook

Bullion Outlook

• MCX gold prices edged higher on Wednesday amid a sharp drop in the US dollar and US 10 year’s treasury yields

• Further, bullion prices were supported by growing fears of a global recession

• MCX gold prices are expected to trade with a positive bias for the day amid weakness in US dollar index. It is likely to surpass the hurdle of | 49,950 to continue its upward trend towards the level of | 50,150 in the coming trading session

• Additionally, investors will take cues from Q2 GDP data and disappointment may take gold further high

Base Metal Outlook

• MCX copper prices advanced by 2.53% yesterday as China has increased its imports of refined copper from the rest of the world, up by 9.8% in the first eight months of the year

• However, further upside was restricted on weaker-than-expected pending home sales data from the US. Pending home sales in the US were down 2% MoM in August 2022, a third consecutive monthly decline and worse than market forecasts of a 1.4% fall

• We expect copper prices to trade with a negative bias for the day amid a continuous decline in copper LME warehouse inventories

Energy Outlook

• MCX crude oil prices rose almost 3.50% on Wednesday for a second day, rebounding from recent losses as the US fuel inventory figures showed larger-than-expected drawdowns and a rebound in consumer demand

• US consumer crude oil inventories dropped from 430.6 million barrels to 430.4 million barrels in last week

• We expect MCX crude oil prices to trade with a positive bias for the day on expectations of rise in fuel demand

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer