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Bullion Outlook

Gold prices rallied on Friday amid risk aversion in the global markets and decline in US treasury yields. Market sentiments were hurt as Russia’s military campaign in Ukraine intensified. Russia seized Europe’s largest nuclear plant in South-eastern Ukraine. Further, demand for safe haven increased as ongoing war and growing sanctions against Russia added uncertainty to the economic outlook

However, further upside was capped on enhanced job data from US. US Non-Farm payrolls surged by 678,000 jobs last month and unemployment rate fell to 3.8% lowest since February 2020

Gold is likely to continue its positive bias for day amid pessimistic global market sentiments and waning in US treasury yields. Rising commodity prices threatens to worsen inflationary pressures and hurt economic growth pushing investors into traditionally safer investments. Meanwhile, strong dollar and lack of economic data from US may prevent sharp upside in prices

Base Metal Outlook

Base metal prices rallied on Friday on fears that lingering geopolitical tension between Moscow and Ukraine would squeeze supply. Additionally, severe sanctions against Russia including blocking some Russian banks from SWIFT and closing of Ukrainian port disrupted exports. Further, a vibrant jobs market drove metal prices higher

However, further upside was capped on strong dollar and mounting headwinds from tighter monetary policy by US Federal Reserve

Industrial metal prices are expected to trade with a positive bias for the day amid worries over supply disruption and declining inventories in LME registered warehouses. Additionally, prices may rally as harsh sanctions complicated Russian exports. Further, market participants fear that rising energy prices may force to cut down productions. However, sharp upside may be capped due to lack of economic data from US and risk aversion in the global markets

Energy Outlook

Crude oil prices continued to rally and surpassed $115 level amid concerns over supply disruption as Russia’s invasion of Ukraine intensified. Further, oil prices rallied as some refiners refused to buy Russian oil. Additionally, market participants fear that US and UK may target Russian energy sector

The Biden administration is to be looking at ways to reduce the import of Russian oil. The UK Foreign minister said Britain will look to target Russia’s energy sector in future rounds of sanctions

Crude oil is expected to rally further for the day on worries that ongoing war between Russia and Ukraine, shuttering of Ukrainian port and harsh sanctions against Russia threatened to disrupt the oil supply. However, hopes for more Iranian supply if US reaches nuclear deal with Tehran will weigh on pricesThe chief British envoy said indirect talks between US and Iran on reviving nuclear deal were close to reaching agreement

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