MCX crude oil prices are expected to slip towards 8,300 for the day - ICICI Direct
Bullion Outlook
* Comex gold prices rallied around 0.85% on Tuesday amid a pessimistic sentiments in the global markets and on sharp decline in US dollar index
* Further, inflationary pressures, retreat in US 10 year bond yields and rising geopolitical tensions continued to support bullion prices on lower side
* However, expectations of aggressive monetary tightening policy by the US Fed to combat the inflation dented demand for precious metals
* MCX gold price is trading above the daily mean levels of | 50,750. As long as it sustains above this level, it is expected to head towards | 51,600 levels in the coming sessions. Silver prices are expected to take cues from gold prices and move towards | 62,400 levels for the day. Additionally, investors will remain cautious ahead of Fed meeting minutes
Base Metal Outlook
* LME copper prices and other industrial metal prices retreated on Tuesday amid a disappointing new home sales data from the US
.* US new home sales dropped to 591,000 units in April 2022 compared to 709,000 units in the previous month primarily due to soaring mortgage rates, the lowest level since April 2020
* However, significant decline in LME copper inventories along with supply disruptions from Peru's copper mine limited further downsides in prices
* MCX copper prices are expected to trade with a negative bias primarily due to worries over slowdown in manufacturing activity from the US. MCX Copper (June futures) price is facing hurdle at 100 DMA (| 784) over the last couple of trading sessions. As long as it sustains below this level, it is likely to correct further towards | 768 levels for the day
Energy Outlook
* MCX crude oil prices eased around 0.40% on Tuesday after the US energy secretary said Washington has not ruled out export restrictions to lower fuel prices
* Moreover, oil prices remained under pressure due to worries over a possible recession and as European Union is struggling to agree on an embargo on Russian imports. The 27-nation bloc is unlikely to approve the ban when leaders meet next week as Hungary opposes the measure Additionally, Saudi Arabia does not expect an immediate
* global shortage of oil, the country's foreign minister Prince Faisal said on Tuesday
* MCX crude oil prices are expected to slip towards | 8,300 for the day on expectation of more fuel supply from reserves. Additionally, investors will keep an eye on stockpiles data from the US
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