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Bullion Outlook

* Gold prices bounced back on Tuesday, buoyed by a retreat in the dollar, as Federal Reserve Chairman Jerome Powell said he expected the Fed to raise interest rates this year and end its asset purchases but added that the central bank had not made any decision about the timing for tightening monetary policy

* Further, Fed Chair Jerome Powell said the US labour market is recovering rapidly from the hit it took during the Coronavirus pandemic and should not face added weakness as the Fed begins to remove some of the support offered during the crisis

* Overall, gold and silver prices are expected to remain supported for the day amid subdued dollar and ahead of the key US inflation data, which is expected to have risen to its highest in decades

Base Metal Outlook

* Base metal prices surged on Tuesday, boosted by tight supply concerns as producers cut production while strong raw material prices also offered support

* Aluminum traded near recent highs due to soaring energy costs and production cuts, which have exacerbated deficits of the metal used in the power, construction and packaging industries

* Aluminum stocks at three major Japanese ports were down 6.4% to 268,600 tonnes at the end of November from 287,100 tonnes at the end of October, Marubeni Corp said on Tuesday

* Base metal prices are expected to remain supported for the day amid falling warehouse inventories and rising demand. Further, weakness in the dollar will make greenback priced metals cheaper for other currency holders. Investors will now focus on key inflation data from major economies along with trade data from top consumer China

Energy Outlook

* Oil rose to more than $81 a barrel on Tuesday, supported by tight supply and expectations that rising Coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery

* A lack of capacity in some countries has meant that supply additions by Opec are running below the allowed increase under a pact with its allies. Recent outages in Libya have also supported prices

* Meanwhile, US crude oil output is expected to rise 610,000 barrels per day to 12.41 million bpd in 2023, the government said in its first forecast for next year

* Crude oil prices are likely to rise further towards ₹ 6090 level for the day amid lower than expected supply additions from the Opec+ nations. Further, falling US inventories and rising global demand will add more support to crude oil prices in the near term

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