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 Bullion Outlook

• Gold prices edged up yesterday and closed near an eight-month high on expectations of slower rate hikes from the Federal Reserve. Further, Fed Chair Jerome Powell did not give any clarity on the tightening path as he avoided speaking about rate hikes

• Additionally, rising demand from China ahead of the Lunar New Year offered support to bullion prices

• Gold is expected to trade with a negative bias for the day amid a rise in US treasury yields. Further, investors await key US inflation data to gauge US Federal Reserve rate hike stance. MCX Gold is likely to break the key support level of 55,600 to continue its downward trend towards the level of 55,350

• MCX silver prices tumbled almost 0.80% yesterday. They are expected to slip towards the level of 67,500 as long as they sustain below the level of 68,800

Base Metal Outlook

• Copper futures jumped to a more than six-month high on Tuesday amid optimism over demand after top consumer China reopened its borders

• Further, copper prices were supported after data showed China's banks extended CNY 1.4 trillion in new yuan loans in December 2022, above market expectations of CNY 1.1 trillion, following Beijing's latest efforts to boost growth in the Chinese economy. Moreover, drop in copper inventories at LME registered warehouses, supported prices

• Copper is expected to trade with a positive bias for the day amid weakness in dollar and rise in risk appetite in global markets. Further, reopening of border and expectation of more stimulus from the Chinese government to boost growth in the economy will support prices. MCX copper is likely to surpass the hurdle of 760 to continue its upward trend towards the level of 766

Energy Outlook

• Natural gas prices edged down on Tuesday after the US Energy Information Administration (EIA) said in its Short Term Energy Outlook that the US natural gas production will rise to a record high in 2023, while demand will fall

• Further, natural gas prices were pressurised after EIA said, US power consumption will ease in 2023 as weaker economic activity and milder weather will drag it from the record high hit the previous year

• Nymex Crude oil prices climbed as the US government forecast global consumption of liquid fuels would reach 102.2 million barrels per day in 2024, driven primarily by growth in countries like India and China

• Crude oil prices are likely to trade with a positive bias amid weakness in the dollar and improving demand outlook in China. MCX crude oil is expected to rise till 6300 level

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