IGI Logo

Daily Commodities Outlook

Bullion Outlook

• MCX Gold prices remained in a narrow range on Monday due to lack of global cues as major markets remained closed

• Further, demand outlook in top consumer China was overshadowed by a surge in Covid-19 infections

• Gold prices are likely to trade with a positive bias mainly on the back of weakness in the dollar and on hopes of smaller rate hikes from the Fed after inflation data showed price pressure is ebbing in the US. MCX Gold is expected to take support near 54400 and move back to 55000 level

• MCX silver prices are expected to take cues from gold prices and move towards the key resistance level of 70000

Base Metal Outlook

• MCX Copper prices advanced on Monday amid hopes of better demand after top consumer China pledged to boost its economy and real estate sector

• Meanwhile, a key road for mining transportation in Peru was cleared after days of protests, a government minister said, as the country struggles with political tensions following the ousting and arrest of former President Pedro Castillo

• Copper prices are likely to trade higher for the day amid weakness in the dollar and rise in risk appetite in global markets. Market sentiments improved on hopes of smaller rate hikes from the Fed and as China announced that its requirement for travellers arriving country to go into quarantine will end in January raising hopes for wider economic reopening. MCX Copper has moved above 200 day EMA at 707, which could act as key support level. As long as it holds this level, it is expected to rise towards the 730 mark, followed by 735

Energy Outlook

• MCX Crude oil futures extended gains on Monday on supply concerns after Moscow indicated the possibility of output cut by 500,000 to 700,000 barrels per day in response to G7 price cap on Russian exports

• However, sharp upside was capped as major markets remained close for Christmas holidays

• Crude oil prices are likely to trade with a positive bias amid weakness in the dollar, optimistic global market sentiments and fears over possible production cut by Russia

• Further, oil prices may rise on concerns that winter storms across the US are affecting logistics and production of petroleum products. Meanwhile, sharp upside may be restricted as rising Covid-19 cases in top crude oil importer China, may dent demand for crude oil. MCX Crude oil prices are expected to trade in the range of | 6500 to | 6800 in the coming trading sessions

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer