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Bullion Outlook

• Comex gold prices declined almost 1.0% on Tuesday amid a surge in US dollar index and on elevated 10 year bond yields

• Moreover, prospect of further monetary tightening by the US Fed to cool down rising inflation weighed on precious metal prices

• However, disappointing macroeconomic data from the US and risk aversion in global markets continued to support bullion prices on the lower side

• MCX gold prices are expected to slip further towards | 49,800 for the day primarily due to elevated dollar index

• Silver prices are expected to take cues from gold prices and may slip towards | 59,000 levels for the day. Additionally, investors will remain cautious ahead of interest decision from the US

Base Metal Outlook

• MCX Copper and other industrial metal prices slipped on Tuesday as investors were concerned that renewed lockdowns in China and a potential global recession could slash demand for metals

• Further, a sharp rise in LME copper inventories coupled with elevated dollar index continued to pressurise copper prices on the higher side

• Argentina said on Monday it would introduce a new optional tax regime for copper producers that could potentially lower export duties in an effort to jumpstart national production

• MCX copper prices are expected to trade with a negative bias due to concerns over lower industrial metal demand. It is trading below support levels of 200 DMA, which is around | 762. As long as it sustains below this level, it is likely to correct towards | 738 levels for the day

Energy Outlook

• WTI crude oil prices traded flat on Tuesday on investor concerns over tight supply. Tight supply has been aggravated by a drop in exports from Libya amid a political crisis that has hit output and ports

• Opec+ countries maintained their forecast that world oil demand will exceed pre-pandemic levels in 2022 but said Russia's invasion of Ukraine and developments related to the Coronavirus pandemic pose a considerable risk

• Natural gas prices slipped after LNG shipping facility in Texas said a fire last week would knock out facility until late this year, reducing export capacity

• MCX crude oil prices (July Futures) are expected to trade in the consolidation range of | 9,050 to | 9,400 for the day on expectation of decline in US crude oil stock piles. However, concerns over slowdown in global economic growth will continue to hurt oil prices

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