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Bullion

Gold prices declined by 0.39% in the previous week on the back of Gold vs. Dollar Index hawkish statements from US Fed Reserve chairman Jerome Powell. However, a sharp downside was prevented on disappointing macro economic data from US

US Fed Chairman Jerome Powell said that Fed will discuss speeding up its taper of large scale bond purchases at its next meeting on December 14-15, which has pressurised gold prices

However, The number of Americans filing new claims for unemployment benefits increased to 222,000 over the last week

Further, US employment growth slowed considerably in November amid job losses at retailers and local government education, which has supported the gold prices

Gold Outlook

Gold prices are likely to trade in the range of | 47250-48700 levels with positive bias due to expectations of higher CPI data from US and decline in US treasury yields. Further, concerns over the Omicron Coronavirus variant and risk aversion in global markets may continue to support the gold prices.

Silver Outlook

Silver prices are expected to take cues from gold prices and are likely to head towards | 63500 levels for the coming week

Base metals

Copper prices declined by 0 .64 % last week amid concerns that spread of the Omicron coronavirus variant could dampen industrial metal demand

Meanwhile, the largest copper miner MMG said on Friday that it would wind down copper production from its Las Bambas operations in Peru by mid -December after failing to establish commercial relationships with local community organizations

Further, Chile's Codelco, the world's largest copper miner, saw output in October drop 9 . 9 % year -on -year to 144 ,100 tonnes

Also, according to weekly data, in warehouses monitored by the Shanghai Futures Exchange, copper stocks shed 13 . 7 % to 36 ,110 tonnes

Copper Outlook

Copper prices are likely to trade in a range of | 710 -738 levels as demand concerns over new coronavirus variant and rising dollar index may put pressure on copper prices . However, sharp downside may be prevented on supply disruptions and declining inventories .

Aluminium Outlook

Aluminium prices are expected to trade in the range of 206 to 216 levels on the back of demand concerns over new Covid -19 variant . However, China’s plan to increase coal benchmark prices may support the aluminium on lower side

Energy

Crude oil prices declined almost 3% in the previous week as OPEC and its allies agreed to their existing policy of monthly oil output increase. Further, new coronavirus variant triggered fresh travel restrictions that could dampen oil demand

The Organization of the Petroleum Exporting Countries, Russia and allies, a group known as OPEC+, surprised the market on Thursday when it stuck to its plans to add 400,000 barrels per day (bpd) supply in January.

According to the Commodity Futures Trading Commission (CFTC) data released on Friday, large speculators reduced their net long position in WTI crude oil to 387,234 from 407,657 over the previous week, indicating bearish sentiment in the crude oil market

Crude oil Outlook

MCX Crude oil prices face strong resistance at 5200 levels and as long as they sustain below this level they are expected to correct further towards 4,700 levels for this week due to higher supply from OPEC and demand concerns over new coronavirus variant

Natural gas Outlook

Natural gas prices are expected to rise towards | 350 levels due to forecasts for cooler weather and higher heating demand in the next two weeks than previously expected

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