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Bullion Outlook

• Comex gold prices rebounded 0.94% on the back of a retreat in US treasury yields and on pessimistic sentiments in the US markets

• Dollar index declined by 0.69% on Wednesday after disappointing GDP data from the US, making bullion cheaper for holders of other currencies. US GDP expanded at a 6.9% annualised rate in CYQ4 2021 compared to 7.1% in CYQ3 2021. Growth has slowed down due to elevated inflation

• Gold prices are expected to trade with a positive bias mainly due to weakness in dollar index and on expectations of unsatisfactory Initial jobless claims data from the US. MCX gold price is taking strong support at 50 day moving average, which comes to around | 50,300. We expect it to head towards | 52,200 levels in the coming days. Silver prices are expected to take cues from gold prices and move further towards | 68,200 for the day

Base Metal Outlook

• LME aluminium and other industrial metal prices rallied on Wednesday due to weakness in dollar index and on tight supply

• On the supply front, smelters in Europe have reduced their output of aluminium and zinc in recent months amid higher energy cost that lifted industrial metal prices

• Moreover, continuous decline in LME inventories of aluminium provided significant support to prices on the lower side

• MCX aluminium prices are likely to consolidate in the range of | 281 to | 292 for the day due to falling LME inventories and supply disruptions from Russia. Additionally, expectations of improved Personal spending data from the US should provide some support to the aluminium prices on lower side. However, worries over China’s economic growth amid Covid-19 lockdown restrictions may cap further upsides in industrial metal prices

Energy Outlook

• Nymex crude oil prices surged 2.62% as the US and European Union countries considered more sanctions against Russia over its invasion of Ukraine. Moreover, consistent decline in US crude oil inventories and doubts over the possibility of a ceasefire between Russia and Ukraine pulled up prices once again

• As per EIA report showed, US crude oil stockpiles eased by 3.44 million barrels over the last week, which was more than expected draw level of 1.02 million barrels, lowest since September 2018

• MCX crude oil prices are likely to trade in the consolidation range of 50 day moving average (| 7,500) and 20 day moving average (| 8,300) for the day

• However, lockdown restrictions in China may hamper the fuel demand for the near term. Additionally, investors will remain cautious ahead of an Opec monthly report released today

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