Weak economic data from the US provided support on lower side - ICICI Direct
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Bullion Outlook
* MCX gold prices slipped on Wednesday and was on track for its longest run of monthly losses since 2018, pressured by aggressive rate hikes by major central banks across the world
* However, weak economic data from the US provided support on lower side .
* MCX gold prices are expected to trade with a negative bias for the day on expectations that interest rates will move higher and stay high longer following Friday's hawkish speech from Federal Reserve chair Jerome Powell
* Additionally, investors will closely watch key macroeconomic data from the US
MCX Gold vs Silver Performance Daily Commodity Pivot Levels
Base Metal Outlook
• MCX copper prices fell to their lowest in more than three weeks on Wednesday after US central bank chief Jerome Powell warned of a painful period of slow economic growth
• Further, copper prices were pressurised by concerns about China's demand and reinforced after Shenzhen shut the world's largest electronics market of Huaqiangbei and suspended service at subway stations in a bid to curb a Covid outbreak
• We expect copper prices to trade with a negative bias for the day on expectations of weak demand from top metal consumer China because of fresh Covid restrictions
Energy Outlook
• MCX crude oil prices edged lower by more than 1.80% on Wednesday on fears that an inflation induced weakening of global economies would soften fuel demand. Also, the unrest in Iraq has not put a dent in the Opec nation's crude exports
• Further, crude oil prices felt more pressure when Russia's fastest growing oil producer Gazprom said it plans to double oil production at its Zhagrin field in Western Siberia to more than 110,000 barrels per day
• We expect MCX crude oil prices to trade with a negative bias for the day on concerns over weakening global economy will dent fuel demand
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