IGI Logo

Bullion Outlook

• Gold prices rallied on Friday amid weak dollar and decline in US 10 year treasury yields. Meanwhile, further upside was capped on stronger than expected economic data from the US. US Service sector grew at a steady pace in February, with new orders and employment rising to more than 1 year high. ISM non-manufacturing PMI stood at 55.1 in February compared to expectation of 54.5

• Gold likely to trade with positive bias for the day on the back of weakness in dollar and decline in US treasury yields. Further, expectation of disappointing economic data from US will support prices. US factory orders are expected to decline by 1.8% in January 2023 compared to 1.8% rise in preceding month. MCX gold is expected to break the key resistance level of 55,900 to continue its upward trend towards the level of 56,100

• MCX silver prices rose by almost 0.60% and it is expected to continue its upward trend towards the level of 65,000

Base Metal Outlook

• Copper prices tumbled and erased their earlier gains on Friday amid a sharp rise in copper inventory at LME registered warehouses

• Further, copper prices were pressurised after data showed key copper mines in Peru including Las Bambas and Glencore Plc's Antapaccay have increased activity again after protests and blockades dented production

• Meanwhile, further downside was cushioned on a drop in US dollar index and on expectations that China may announce more stimulus at its National People’s Congress to revive economic growth

• Copper is expected to trade with a negative bias for the day as there is some disappointment in the market after Beijing set growth outlook with target of 5% rather than market expectation of 5.5%. Further, investors will closely watch factory orders data from the US, which is expected to drop from 1.80% to -1.80%. MCX copper is likely to break the key support level of 755 to continue its downward trend towards the level of 750 for the day

Energy Outlook

• Crude oil prices recovered from a brief sell-off on Friday amid renewed optimism around demand from top oil importer China

• China's service sector activity in February expanded at the fastest pace in six months. The Caixin services purchasing managers' index (PMI) rose to 55.0 in February from 52.9 in January

• Furthermore, crude oil prices were supported after energy services firm Baker Hughes Co said, US energy firms last week cut the number of oil and natural gas rigs operating for a third week in a row for the first time since August

• Crude oil is expected to trade with a positive bias for the day on the back of weak US dollar and signs of a strong economic rebound in top crude oil importer China. MCX crude oil is expected to continue trading in an upward trend towards the level of 6600

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer