MCX gold prices edged higher by more than 1.00% on Thursday

01-01-1970 12:00 AM | Source: ICICI Direct Ltd

MCX gold prices edged higher by more than 1.00% on Thursday - ICICI Direct

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Daily Commodity Outlook

Bullion Outlook

* MCX gold prices edged higher by more than 1.00% on Thursday as interest rate hike by the US Fed raised fears over a possible recession

* However, upsides were restricted by a sharp rise in US 10 year’s treasury yields

* MCX gold prices are expected to trade with a positive bias for the day amid growing fears of possible global recession. It is likely to surpass hurdle of | 50,250 to continue its upward trend towards the key resistance level of 50,650 in coming trading sessions

* Additionally, investors will closely watch manufacturing PMI and services PMI data from the US

Base Metal Outlook

• MCX industrial metal prices advanced on Wednesday amid optimism that Chinese stimulus measures would boost demand

• Shanghai announced 1.8-trillion-yuan investment worth of infrastructure projects, heeding national policymaker’s calls to revive slow economic growth

• We expect copper prices to trade with a positive bias for the day as data showed that global refined copper market showed a 30,000 tonne deficit in July, bringing the deficit level in the first seven months of the year to 126,000 tonnes

Energy Outlook

• MCX crude oil prices rose yesterday as crude oil demand in China, the world's largest oil importer, is rebounding, having been dampened by strict Covid-19 restrictions

• MCX natural gas prices dropped by almost 3.60% amid a rise in US natural gas inventories from 2,771 bcf to 2874 bcf last week

• We expect MCX natural gas prices to trade with a positive bias for the day amid forecasts of milder weather through early October that should allow utilities to inject more gas than usual into storage over the next few weeks