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Daily Commodities Outlook

Bullion Outlook

• Gold prices climbed over 2% on Tuesday to their highest levels in more than five months after data showed a smaller-than-expected rise in US consumer prices, cemented bets for a slowdown in rate hikes from the US Federal Reserve

• Further, a sharp drop in the US dollar index and US treasury yields supported gold prices

• Gold prices are expected to trade with a positive bias for the day amid weakness in the US dollar and decline in US treasury yields. Also, prices may rally in anticipation that Fed could slow its plan for tightening financial conditions due to easing inflation. MCX gold prices are likely to break the key resistance level of 54,800 to continue their upward trend towards the level of 55,200 in the coming trading session

• Additionally, MCX silver prices are expected to take cues from gold prices and trade in uptrend towards 69,900 level

Base Metal Outlook

• Copper prices rallied on Tuesday amid weakness in the US dollar and rise in risk appetite in global markets

• Further, prices were supported as Peruvian community members blocked a key mining corridor highway near the city of Cusco amid protests against the country's new president. Moreover, a sharp drop in copper inventories at LME registered warehouses supported prices

• However, higher cases of Covid-19 in China and caution ahead of central bank meetings capped further gains

• Copper prices are expected to trade with a positive bias for the day amid weakness in dollar, optimistic global market sentiments and concern over supply disruption. Meanwhile, rising Covid-19 cases in China may restrict further gains. MCX copper is likely to break key support level of 708 and rise further till 714 levels

Energy Outlook

• WTI Crude oil prices rose by 3.00% yesterday as investors bought risk assets after US data pointed to slowing inflation

• Further, crude oil prices were supported by concerns about supply disruptions, including the ongoing shutdown of the Canada-to-US Keystone crude pipeline following a massive leak

• Moreover, prices were supported after Opec said in a monthly report that World oil demand in 2023 will rise by 2.25 million barrels per day (bpd) or about 2.3%

• Oil prices are likely to trade with a positive bias for the day amid weakness in dollar and rise in risk appetite in global markets. Further, Opec expects robust global oil demand growth in 2023 with potential economic upside coming from a relaxation of China's zero-Covid policies. The market awaits more cues on monetary policy from conclusion of Fed meeting. Traders will remain cautious ahead of crude oil inventory data. MCX crude oil prices are likely to continue their upward trend towards the level of 6450

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