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Bullion Outlook

• Gold prices edged up on Thursday as the number of Americans filing for unemployment benefits jumped to 211,000 on the week ending March 4, the most since December 2022 and well above market expectations of 195,000. The latest value was the first upside surprise in one month

• Further, bullion prices were supported on a drop in the US dollar and decline in US 10 year’s treasury yields

• Gold is likely to trade with a positive bias for the day amid a weak dollar and decline in US treasury yields. Further, US non-farm payroll data is likely to show that fewer jobs were added in the economy in February compared to the previous month. Softness in the labour market may provide some relief to investors. MCX gold is expected to break the key resistance level of 9 DMA at 55,500 to continue its upward trend towards the level of 55,600

• MCX silver prices rose by more than 0.20% and are expected to continue their upward trend towards the level of 62,400

Base Metal Outlook

• Copper and aluminium prices dropped yesterday after economic data in China underlined worries about sluggish demand in top metals consumer

• Meanwhile, sharp downside was prevented as weaker than expected US unemployment claims data raised expectations that Federal Reserve may not speed up the pace of its interest rate hikes

• Additionally, copper prices were supported on a drop in copper inventories at LME registered warehouses and a weak US dollar

• Copper is expected to trade with a negative bias for the day amid concerns over weak demand from the top consumer China. China’s annual CPI in February slowed to its lowest rate in a year, reviving concerns over pace of recovery. Further, prices may slip on easing of supply concerns from major copper producing countries. MCX copper is likely to break the key support level of 750 to trade in a downward trend towards the level of 747 for the day

Energy Outlook

• Natural gas prices tumbled on Thursday despite data showing US natural gas storage dropped by 84 bcf in the last week

• Crude oil prices dropped yesterday on worries that rising borrowing cost across major countries could slow down the economy and hamper oil demand

• Crude oil is expected to trade with a negative bias for the day on looming worries of softening demand in face of a possible recession. Meanwhile, sharp downside may be cushioned as a crack in the tight labour market signals that Fed’s restrictive policy is beginning to work as intended. MCX crude oil is likely to break the key support level of 6250 to continue its downward trend towards the level of 6200

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