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Bullion Outlook

• Gold prices edged higher on Tuesday amid weaker than expected macro economic data from the US. Consumer sentiment in the US deteriorated in February with the Conference Board's Consumer Confidence Index declining to 102.9 from 106 in January

• Gold likely to trade with a positive bias on weak global market sentiments. Further, US treasury yields are trading flat as market awaits data on consumer prices and labour market in coming weeks to gauge the pace of inflation and how long Fed will keep rates elevated. Meanwhile, investors will closely watch ISM manufacturing PMI data from the US, which is expected to rise from 47.4 to 48. MCX gold is likely to rise towards the level of 56,000 for the day

• MCX Sliver prices rose by almost 1.10% yesterday. It is likely to continue its upward trend towards the level of 65,200

Base Metal Outlook

• Copper prices advanced on Tuesday as speculators adjusted positions on hopes for a demand revival in top metals consumer China

• Further, copper price were supported on drop in copper inventories at LME registered warehouses

• Moreover, copper prices gained on expectations that the Chinese economy may recover strongly from as early as March, with the government likely to roll out more stimulus at the National People's Congress

• Copper is expected to trade with positive bias for the day on expectations that the Chinese government will provide more stimulus package to the economy, which will boost demand for the base metals. Further, China’s factory, services and construction activities rebounded strongly in February. MCX copper is likely to continue its upward trend towards the level of 774

Energy Outlook

• Natural gas prices dropped on Tuesday as natural gas exports of Kremlin-controlled energy giant Gazprom to Europe increased by 16% in February from January

• Crude oil prices rose yesterday as hopes for a strong economic rebound in China offset worries about US interest rate hikes dragging down consumption in the world's biggest economy

• Crude is likely to trade with positive bias for the day amid expectations that economic recovery in China will increase the demand for the crude oil. Further, EIA data showed US crude oil production fell in December to 12.10 million bpd, its lowest since August 2022. MCX crude oil is expected to continue its upward trend towards the level of 6500 for the day

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