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Bullion Outlook

• Gold prices rose on Thursday towards eight-month high levels amid weakness in the dollar and risk aversion in global markets

• Further, demand for safe haven rose as hawkish comments from Fed officials and series of weak economic data fuelled recession worries

• Gold is expected to trade with a positive bias for the day amid weakness in dollar and pessimistic global market sentiments. Market sentiments were hurt as investors are worried over economic health of the country as lagged effect of Fed rate hikes are beginning to take their toll. Moreover, expectations that the US Fed will not be aggressive in raising interest rates from next meeting, may support gold prices. MCX Gold is likely to break the key resistance level of 56,560 to continue its upward trend towards the level of 56,700 in the coming trading session

• MCX silver prices remained volatile and marginally drop yesterday. However, they are likely to rise towards the level of 69,000 for the day

Base Metal Outlook

• MCX Copper prices retreated on concerns over global economic slowdown and risk aversion in global markets

• Further, copper prices were pressurised after data showed building permits in the US fell 1.6% to a seasonally adjusted annual rate of 1.33 million in December 2022, the lowest level since May 2020 and below market expectations of 1.37 million. Building permits have been falling as high inflation and rising mortgage rates hit demand for new housing

• Copper is expected to trade with a positive bias for the day on supply concerns and depleting inventories and LME registered warehouses. Further, copper prices may rally on expectation of slowdown in the pace of rate hike after series of weak economic data from US pointed to growing sluggishness in economy. Copper may rise till 785 levels

• MCX Zinc prices edged higher by almost 2.00% and touched four-months high level. It is expected to continue trading in upward trend till 300 level

Energy Outlook

• Crude oil prices edged up yesterday on weak dollar, rising Chinese demand and concern over tighter energy markets

• Further, oil prices rallied on expectation that US Fed will end its tightening cycle on looming recessionary fears. Meanwhile, worries over global economic slowdown and a surprise build in US crude oil stocks restricted further upside in prices

• Crude oil prices are expected to trade with a positive bias for the day on expectations that lifting of Covid-19 restrictions in China will probably increase crude oil demand. Additionally, investors will closely watch US Baker Hughes total rig count data for further clues. MCX Crude oil prices are likely to surpass the hurdle of 6600 to continue trading in upward trend towards level of 6700

• MCX Natural gas prices dropped by more than 2.00%, It is expected to continue its downward trend towards 260 level

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