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Bullion Outlook

• Gold prices dropped sharply on Tuesday as demand for the safehaven declined amid easing worries over a banking crisis. Further, bullion prices slipped on stronger-than-expected macroeconomic data from the US and sharp rise in US 10 year’s treasury yields. Meanwhile, further downside was restricted on a drop in the US dollar index

• Gold is likely to trade with a negative bias for the day amid a surge in US treasury yields across the curve and a rise in risk appetite in global markets. Market sentiments improved on hopes of stability in the banking sector after regulators intervened. Further, prices may slip on expectations that US interest rates may rise when the Federal Reserve's policy committee ends its two-day meeting on Wednesday. MCX gold is expected to break the key support level of 58,350 to continue its downward trend towards the level of 58,000

• MCX silver prices fell more than 0.60%. It is likely to continue its downward trend towards the level of 67,600

Base Metal Outlook

• Copper prices edged higher on signs of firmer demand and less worries over the global banking sector

• Further, copper prices were supported on a drop in copper inventories at LME registered warehouses coupled with decline in US dollar index

• Copper is expected to trade with a positive bias for the day amid soft dollar and optimistic global market sentiments. Market sentiments improved on hopes of stability in the banking sector after major central banks pledged to boost liquidity. Moreover, US Secretary Janet Yellen said the federal government will intervene to protect depositors in smaller US banks that may be suffering deposit runs if they pose risk of contagion. MCX copper is likely to surpass the hurdle of 767 to continue its upward trend towards the level of 770

• MCX aluminium prices may find support near 201 level and bounce back till 204 levels

Energy Outlook

• MCX Crude oil prices edged up on Tuesday rebounding from a 15-month low hit the previous day, as the rescue of Credit Suisse eased concerns on a banking crisis that would hurt economic growth and cut fuel demand

• Further, crude oil prices were supported after reports showed US crude exports to Europe hit a record 2.1 million barrels per day on average so far this month

• Crude oil is expected to trade with a positive bias for the day amid weakness in the dollar and optimistic global markets. Market sentiments improved as fears over liquidity in the banking sector abated and investors eyed the outcome of FOMC meeting. MCX Crude oil prices are likely to break the key resistance level of 9 DMA at 5860 to continue their upward trend towards the level of 5940

• MCX Natural gas prices rose 0.70% and are expected to continue their upward trend towards the level of 190

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