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Bullion Outlook

• Gold prices closed lower on Wednesday, giving up early gains made on a sharp decline in US 10 year’s treasury yields and weaker than expected macroeconomic data from the US as key Fed policymakers signalled that interest rates should move above 5%

• Retail sales in the US declined 1.1% MoM in December 2022, worse than forecasts of a 0.8% fall

• Gold is expected to trade with a positive bias for the day amid a decline in US treasury yields and risk aversion in global markets. Meanwhile, investors will closely watch initial jobless claims data from the US, which is expected to rise from 205,000 to 214,000. MCX Gold is likely to surpass the key resistance level of 56,500 to continue its upward trend towards the level of 56,700 in the coming trading sessions

• MCX silver prices tumbled almost 1.40% yesterday. It is expected to slip towards the level of 67,600

Base Metal Outlook

• Copper prices edged higher yesterday, rising to its highest levels since June as speculators bet that rising Chinese demand will lift prices

• Further, copper prices were supported by a sharp decline in copper inventories at LME registered warehouses

• Moreover, Chilean miner Antofagasta reported a 10.4% fall in 2022 copper output as lower ore grades and a drought in Chile continued to hurt production

• Copper is expected to trade with a positive bias for the day on supply concerns and as demand prospect improved after China started easing its Covid-19 policy. Apart from this, expectations of a slowdown in pace of rate hike in US will support base metal prices. Further, traders will closely watch housing data from the US for more clarity. MCX copper is likely to continue its upward move towards the level of 782

Energy Outlook

• US Natural gas prices dropped on Wednesday and touched levels last seen in June 2021, after EIA said US natural gas production is expected to outpace domestic demand and exports this year and in 2024 • Crude oil prices inched down yesterday, surrendering early gains amid worries about a possible US recession, which may dent fuel demand

• Further, oil prices reversed gains as hawkish comments from US Federal Reserve officials sparked worries that the central bank may not pause interest rate hikes any time soon

• Crude oil prices are expected to trade with a negative bias for the day on growing concerns over a global economic slowdown and as industry data signalled another big weekly build-up in US crude inventories. MCX Crude oil prices are expected to drop further till 6400 level

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