Crude oil prices rallied 1.01% on Wednesday amid decline in US crude oil - ICICI Direct
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Bullion Outlook
Gold prices declined 0.10% on Wednesday amid elevated US treasury yields. However, a sharp downside was prevented on rising geopolitical tensions between US and Russia over Ukraine issue
US benchmark 10 year treasury yields increased to 1.52, increasing opportunity cost of holding non yielding bullio
President Joe Biden warned Russia on Tuesday that the US would impose strong economic and other measures on Russia if it invades Ukraine
MCX gold prices are likely to trade in a range of 47,800 to 48,200 levels with negative bias on the back of elevated US treasury yields and on expectations that the US Fed may start early rate hike. Also, investors will now focus on Unemployment claims data from US.
Base Metal Outlook
Copper prices surged 0.63% on Wednesday after Peruvian government officials failed negotiations with local people to unblock a key road used by MMG Las Bambas copper plant
Nickel prices climbed 0.36% on Wednesday as inventories in LME exchange warehouses hovered near record lows and China's central bank eased monetary policy
LME inventories of the Nickel have dropped to 109,986 tonnes, lowest since December 2019 and LME cash nickel premium over the three month contract was $150.80 a tonne, indicating tight supplies
MCX Nickel prices are likely to trade in a range of | 1560 to 1600 levels with a positive bias mainly due to decline in LME inventories. However, a sharp upside may be prevented on expectations of earlier interest rate hike by US Fed
Energy Outlook
Crude oil prices rallied 1.01% on Wednesday amid decline in US crude oil stock piles and concerns about Omicron coronavirus variant eased. Further, Crude oil prices were supported by rising geopolitical tensions between US and Russia over Ukraine issue
US natural gas futures rose more than 3.45% on Wednesday amid higher US liquefied natural gas exports and forecasts for more heating demand this week than previously expected
According to EIA weekly report released on Wednesday, US crude oil inventories decreased by 0.240 million barrels per day over the last week, below the expected draw level of 1.70 million barrels per day
MCX crude oil prices are likely to trade in a range of | 5,380 to 5,650 levels with positive bias due to rising US Russia geopolitical tensions and falling US crude oil inventories
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