IGI Logo

Bullion Outlook

• Gold prices edged higher on Friday as the unemployment rate in the US edged up to 3.6% in February 2023, up from a 50-year low of 3.4% seen in January and above market expectations

• Further, bullion prices were supported on drop in dollar index and sharp decline in US 10 years treasury yields

• Gold is likely to trade with a positive bias for the day amid decline in US treasury yields and weak dollar. Yields are tumbling on concerns about the health of US financial system and as US job data showed hourly earnings rose less than expected, raising hope that Fed can be less aggressive in path of rate hikes. MCX gold is expected to break the key resistance level of 56,300 to continue its upward trend towards the level of 56,550

• MCX silver prices rose more than 1.40% and are expected to continue their upward trend towards the level of 64,000

Base Metal Outlook

• Copper prices edged lower on Friday amid worries about the impact of higher interest rates on economic growth and global metals demand

• Meanwhile, sharp downside was cushioned on a weak dollar and drop in copper inventories at LME registered warehouses

• Copper is expected to trade with a negative bias for the day amid risk aversion in global markets and concerns of slowing global economy. Additionally, on the supply side, improved situations in key mines in Peru and Indonesia eased worries of wider supply deficit. MCX copper is likely to break the key support level of 750 to continue its downward trend towards the level of 748-747 in the coming trading session

• MCX Aluminium prices dropped almost 0.50% and are expected to continue their downward trend towards the level of 202.5

Energy Outlook

• Crude oil prices rose on Friday amid a decline in the US dollar index. Further, a soft jobs report from the US prompted financial markets to dial back expectations for a 50 bps rate hike in the March meeting. Furthermore, crude oil prices were supported on a drop in US Baker Hughes oil rig counts from 592 to 590

• Crude oil is expected to trade with a negative bias for the day amid risk aversion in global markets. MCX crude oil is likely to break the key support level of 6260 to continue its downward trend towards the level of 6200

• MCX Natural gas prices dropped more than 3.20% and are expected to continue their downward trend towards the level of 196 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