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Bullion Outlook

• Gold prices advanced on Wednesday as the ISM manufacturing PMI edged higher to 47.7 in February 2023 from 47.4 in January, which was the lowest since May 2020, and below market forecasts of 48. The reading pointed to a fourth consecutive month of falling factory activity

• Further, bullion prices were supported on weaker dollar index. Meanwhile, further upside was restricted on uptick in US 10 years treasury yields

• Gold likely to trade with a positive bias on the back of weakness in US dollar. In the meantime, investors will closely watch initial jobless claims data from the US, which is expected to rise from 192k to 195k. MCX gold is expected to continue trading in its upward trend towards the level of 56,200

• MCX silver prices edged higher yesterday and it is expected to continue its upward trend towards 65,200

Base Metal Outlook

• Copper and other industrial metals prices rose on Wednesday as the Caixin China general manufacturing PMI increased to 51.6 in February 2023 from 49.2 in January and above market consensus of 50.2. This was the first increase in factory activity since last July, and the highest reading in 8 months, after a shift in COVID policy

• Further, weakness in dollar index and sharp drop in copper inventories at LME registered warehouses supported prices

• Copper is expected to trade with a positive bias for the day amid weak dollar and depleting stockpiles at LME registered warehouses. Further, better than expected economic data from China reinforced demand hopes. Additionally, investors will keep an eye on China’s annual parliament meeting scheduled next week as it will disclosed new growth target

• MCX copper is likely to break the key resistance level of 778 to continue its upward trend towards the level of 780

Energy Outlook

• MCX Crude oil prices dropped yesterday after government data showed US crude inventories rose by 1.2 million barrels last week to 480.2 million barrels to the highest since May 2021

• Additionally, media reports Russia’s oil production reached the pre-sanctions level for the first time in February and the OPEC production also climbed in February

• Crude oil is expected to trade with a positive bias for the day amid weakness in dollar. Further, robust Chinese data indicates a strong economic recovery after it eased strict covid-19 measures earlier this year and bodes well for oil demand. MCX crude oil is expected to trade in upward trend towards the level of 6500

• MCX natural gas prices edged up by almost 4.00% yesterday. It is expected to continue its upward trend towards the level of 236

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