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Bullion Outlook

• Gold prices declined 0.52% on Wednesday on the back of an uptick in US treasury yields. However, a sharp downside was prevented on a weaker dollar index

• US benchmark 10 year treasury yields surged to 1.54, increasing the opportunity cost of holding non yielding bullion

• MCX gold prices are likely to trade in a range of | 47,450 to 47,950 levels with a negative bias mainly due to a rise in US treasury yields. Further, a rally in the rupee against the dollar may continue to put pressure on gold prices

• Meanwhile, investors will keep an eye on initial jobless claims data from the US

• Silver prices are expected to take cues from gold prices and are likely to correct further towards 60,800 level for the day

Base Metal Outlook

• MCX Copper prices declined 0.87% on Wednesday amid disappointing pending home sales data from the US and demand concerns over the impact of the Omicron variant

• According to the National Association of Realtors data released on Wednesday, US pending home sales fell 2.2% in November compared to 7.5% rise in October 2021

• Meanwhile, Chilean miner Antofagasta has agreed to supply copper concentrate to some Chinese smelters at treatment and refining charges of $65 a tonne

• MCX Copper prices are likely to correct further towards | 735 levels for the day due to weaker pending homes sales data from US and on demand concerns over Omicron variant. However, a sharp downside may be prevented on falling LME inventories and weakness in the dollar index

Energy Outlook

• Oil prices gained 0.30% on Wednesday as global supply outages and decline in US crude oil stockpiles offset concerns that rising Omicron Coronavirus variant cases may reduce demand

• US crude oil inventories declined by 3.6 million barrels over the last week, which was more than expected draw level of 3.2 million barrels

• Meanwhile, Russian Deputy Prime Minister Alexander Novak said that the Opec+ group of producers has resisted calls from Washington to boost output as they want to provide the market with clear guidance and not deviate from policy on gradual increases to production

• MCX crude oil prices are likely to trade in the range of | 5,635 to 5,850 levels with a positive bias due to decline in US Crude oil inventories. Further, investors will keep an eye on rigs count data from the US

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