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Bullion Outlook

• Gold prices eased from an eight-month peak on Wednesday as investors positioned themselves ahead of US inflation data. The US inflation numbers will throw some light on the Federal Reserve's policy path with expectations mounting that slower rate hikes were on the horizon

• Gold is expected to trade with a positive bias for the day as the dollar hovers near a seven-month low. Further, CPI is expected to ease to 6.5% in December 2022. Moderating inflation will provide room for Fed to dial back on its aggressive rate hike. MCX Gold is likely to hold the support level of 55,350 and move back to 56000 level

• MCX silver prices edged lower by almost 0.50% yesterday. They are expected to drop further till the level of 66,700 as long as they sustain below 20 DMA level of 68,900

Base Metal Outlook

• Copper prices edged higher to more than a six-month high, fuelled by optimism that China’s reopening will spur demand in the world’s top consumer

• Further, a raft of policy measures from Beijing to revive its economy and its ailing property sector have boosted investor sentiment

• Moreover, copper prices rallied on weakness in dollar and on supply concerns

• Copper is expected to trade with a positive bias for the day on prospect of stronger demand from China after it reopened its borders and on looming supply concerns from Chile. Further, prices may rally on expectations that the Chinese government will provide more stimulus to the economy, which will eventually boost demand for base metals. MCX copper is likely to break the key resistance level of 772 to continue its upward trend towards the level of 779

Energy Outlook

• Crude oil prices rose to a one-week high on weakness in the dollar and ongoing concern over the impact of sanctions on Russian crude oil output

• Also, oil prices rallied on hopes that inflation in the US will ease in December providing room for the Fed to dial back its aggressive rate hike policy. Meanwhile, further upside was capped on immense build-up in US crude stocks. EIA said crude oil inventories jumped by 19.0 million barrels last week

• Crude oil prices are expected to rise further on expectations global petroleum demand is set to touch a record high next year. Further, crude oil prices may be supported as the dollar hovers near seven-month lows. MCX Crude oil is likely to continue its upward trend towards the level of 6500 for the day

• MCX Natural gas prices dropped almost 1.50% yesterday. They are expected to drop further till 280 levels

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