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Daily Commodities Outlook

Bullion Outlook

• Gold prices rose on Friday despite an uptick in the US dollar and US treasury yields as some investors still expect the Federal Reserve to slow the pace of rate hikes from early next year

• Further, data showed producer price inflation eased further in November. The reading could signal a similar trend in CPI

• Gold prices are expected to trade with a positive bias for the day amid risk aversion in global markets. Growing recession fears tempered risk sentiments. Further, prices may rise on expectations that the US Fed will stay less aggressive in raising interest rates from this month. MCX Gold prices are likely to surpass the hurdle of 54,400 to continue its upward trend towards the level of 54,600 in the coming trading session

• Additionally, MCX silver prices are expected to take cues from gold prices and trade towards 69,000 level

Base Metal Outlook

• Copper prices declined after hitting their highest in more than five months on Friday amid a rebound in the US dollar and weak global market sentiments

• However, sharp downside was prevented as an easing of Covid-19 curbs in China boosted demand expectations in the world's top consumer of the metal. Additionally, a sharp decline in copper inventories at LME registered warehouses, supported prices

• Copper prices are expected to trade with a positive bias for the day on hope for Chinese economic recovery as Covid-19 curbs are relaxed. Further, Beijing recently announced support for languishing Chinese property developers. MCX copper prices are likely to break the key resistance level of 708 to start trading in an upward trend towards the level of 714 in the coming trading session

Energy Outlook

• Crude oil prices settled lower with both benchmarks recording their biggest weekly declines in months, as growing recession fears nullified any supply woes after weak economic data from China, Europe and the US

• Meanwhile, sharp downside was cushioned after Russian President Vladimir Putin said the world's biggest energy exporter could cut output in response to a price cap on its crude oil exports

• Oil prices are likely to trade with a negative bias for the day on concerns that slowing global economy may dent crude oil demand. Meanwhile, sharp downside may be prevented as Canada's TC Energy shut its Keystone pipeline in the US after more than 14,000 barrels of crude oil spilled into a creek in Kansas. On top of it, Russian President Putin threatened to cut production in retaliation against a western price cap on oil exports. MCX crude oil prices are likely to break the key support level of 5800 to continue its downward trend towards the level of 5650

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