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Bullion Outlook

* Gold prices dropped on Friday as S&P Global US services PMI rose to 53.8 in March 2023 from 50.6 in January, beating market expectations of 50.5. It was the fastest rise in output since April 2022, with firms linking the upturn to stronger demand conditions and a renewed increase in new business

* Further, bullion prices were pressurised on an uptick in US dollar index. Meanwhile, further downside was restricted on a drop in US 10 year’s treasury yields

* Gold is likely to trade with a negative bias for the day amid a firm dollar index. MCX gold is likely to slip further till 59100 as long as it sustains below 59500. If it succeeds in breaching 59100 it may decline further till 58650

* MCX silver has formed a bearish engulfing pattern on four-hourly chart and is likely to slip further till 69400 (20-day EMA)

Base Metal Outlook

* Copper prices edged lower on Friday as prices eased from last session's three-week peak, with the market still assessing the wider banking sector turbulence

* Further, copper prices were pressurised on a rise in US dollar index. Meanwhile, further downside was cushioned on stronger-than-expected manufacturing PMI data from the US

* Copper is expected to trade with a negative bias for the day amid an uptick in US dollar index. Further, copper prices may drop on fears about contagion among banks. MCX copper is likely to break the key support level of 783.50 to trade in a downward trend toward the level of 780 for the coming trading session

*MCX aluminium prices are likely to continue their downward trend towards the level of 200 in the coming trading session

Energy Outlook

* Crude oil prices fell on Friday as European banking shares fell and after US Energy Secretary Jennifer Granholm said refilling the country's Strategic Petroleum Reserve (SPR) may take several years, denting demand for crude oil

*Crude oil prices are expected to trade with a negative bias for the day amid a strong US dollar index and weak global market sentiments. Market sentiments were hurt amid lingering nervousness over banks. MCX crude oil is likely to break the key support level of 5650 to continue its downward trend towards the level of 5600

* MCX Natural gas is likely to slip further till 175 level. On four-hourly chart it is facing strong resistance near 185, which is its 20-day EMA

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