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Bullion Outlook

• Comex gold prices advanced almost 0.72% on Friday amid decline in US 10 year treasury bond yields and a weak US dollar

• At the same time, growing concerns over rising inflation and geopolitical uncertainty boosted demand for bullion prices

• However, strong economic data from the US prevented further gains. Core PCE prices index in the US, rose 0.6% MoM in June 2022, following a 0.3% increase the previous month and slightly above market expectations of 0.5%

• MCX gold prices are expected to trade with a positive bias for the day amid weakness in US dollar index. It is likely to continue its upward trend towards the level of | 51,780 in coming session

• Silver prices are expected to take cues from gold prices and may rally towards | 59,360 levels for the day

Base Metal Outlook

• Comex copper and aluminium prices edged higher on Friday due to hopes of demand recovery in top consumer China

• Further, copper prices were supported after miner and trader Glencore on Friday cut its full year copper guidance and said total copper production fell 15% to 510,200 tones in the first half of this year

• Moreover, the Chilean state miner Cadalco reported it produced 736,000 tones of copper between January and June of 2022, a 7.5% fall compared to the first half of 2021, supported copper prices

• MCX copper prices are expected to trade with a positive bias for the day amid sharp drop in copper LME warehouse inventories. It is likely to trade in the range of | 655 to | 675 in coming session

• Additionally, investors will remain cautious ahead of Manufacturing PMI data from the US

Energy Outlook

• WTI crude oil prices advanced almost 2.28% on Friday as attention turned to next week's Opec+ meeting and dimming expectations that the producer group will imminently boost supply

• At the same time, according to a monthly report from the US Energy Information Administration, US crude oil production slid in May by about 0.5% to its lowest since February

• Moreover, crude oil prices were supported as report showed Opec+ group produced almost 3 million barrels per day less crude than foreseen by its quotas in June due to sanctions on some members

• MCX crude oil prices are expected to trade with a positive bias for the day due to expectations of lower production from Opec+ countries. It is likely to continue its upward move towards the level of | 8150 in coming trading sessions

• Additionally, MCX natural gas prices are expected to trade towards the level of | 674 in coming session

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