IGI Logo

Bullion Outlook

• Gold prices rebounded 0.71% on Tuesday mainly due to investors flocking to the safe haven metal as surging Covid-19 cases of the Omicron variant threatened the global economic recovery

• Further, series of disappointing macroeconomic data from the US also supported gold prices. However, sharp gains were capped on uptick in the US treasury yields

• In the physical market, India, the world's second-biggest bullion consumer, splurged a record $55.7 billion on gold imports amid lower prices and pent up wedding demand

• MCX gold prices are likely to rise further towards | 48,300 levels on the back of concerns over Omicron variant and higher inflation

• Silver prices are expected to take cues from gold prices and are likely to march towards | 63,200 level for the day

Base Metal Outlook

• Copper prices surged 0.72% on Tuesday amid decline in inventories and on improved manufacturing data from China

• China’s Caixin Manufacturing PMI increased to 50.9 in December from 49.9 in November, highest level since June 2021, supported by accelerated production

• According to CFTC data released on Tuesday, large speculators increased their net long positions in copper to 14,383 from 4,400 over the previous week, indicating bullish sentiment in the copper market. Further, LME registered warehouse inventories of copper declined to 88,725 tonnes, lowest since 2018

• MCX copper prices are likely to rise further towards | 760 levels due to easing worries over China’s economy and on falling LME inventories. However, a sharp upside may be capped on demand concerns over Omicron coronavirus variant

Energy Outlook

• Oil prices advanced 1.3% on Tuesday as Opec+ producers agreed to stick to their planned increase for February based on indications that Omicron would have only a mild impact on demand

• Opec+ agreed in their meeting on Tuesday to add 400,000 barrels per day (bpd) output in February as it expects the Omicron variant to have short-lived impact on demand

• Meanwhile, Britain's vaccine minister said people being hospitalised with Covid-19 in the United Kingdom were generally showing less severe symptoms than previously

• MCX crude oil prices are likely to trade in the range of | 5600 to 5800 levels with a positive bias due to expectations of falling crude oil inventories in the US. However, sharp upsides may be prevented on fresh travel restrictions in many countries

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer