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Bullion Outlook

• Gold prices declined 0.44% on Tuesday amid elevated US treasury yields and a stronger dollar index. However, a sharp downside was prevented on risks posed to global economic growth from a surge in Omicron variant cases

• US benchmark 10 year treasury yields surged to 1.48, increasing the opportunity cost of holding non yielding bullion

• MCX gold prices are likely to trade in a range of | 47,700 to 48,300 levels with a negative bias on the back of elevated US treasury yields. Further, increasing risk appetite in the global markets and a strengthening rupee against the dollar may put pressure on gold prices. Meanwhile, investors will keep an eye on GDP data from the US

• Silver prices are expected to take cues from gold prices and correct towards | 61,250 levels for the day

Base Metal Outlook

• Copper prices rebounded 1.07% on Tuesday amid concerns over tight supply. Further, demand for the industrial metal was forecast to get a boost from China's easy monetary policy • At the same time, miners are braced for tighter environmental rules in Chile after President elect Gabriel Boric pledged to oppose a $2.5 billion iron copper mine approved in August

• Meanwhile, supply concerns were recently exacerbated by the suspension of production at MMG Ltd's Las Bambas copper mine in Peru , which has supported copper prices on the lower side

• MCX copper prices are likely trade in a range of | 738-750 levels with positive bias mainly due to concerns over supply disruptions and on expectations of higher existing home sales data from the US. However, worries over the new Omicron Coronavirus variant may hamper demand for industrial metals

Energy Outlook

• Oil prices surged 2.64% on Tuesday after a sharp fall in the previous session as investors' appetite for risk improved although they remained cautious amid rapid spread of the Omicron Coronavirus variant across the globe

• US natural gas futures gained 2.00% on Tuesday amid higher US liquefied natural gas exports and on decline in Russian Yamal pipeline gas flows to Europe

• Meanwhile, Moderna said on Monday that a booster dose of its Covid-19 vaccine appeared to be protective against the fast spreading Omicron variant in laboratory testing

• Crude oil prices are likely to trade in the range of | 5,250 to 5,500 levels with a positive bias due to expectations of decline in US crude oil inventories. However, demand concerns over Omicron Coronavirus variant may continue to put pressure on oil prices

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