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Bullion Outlook

• Gold prices surged 0.29% on Monday on the back of rising geopolitical tensions between Russia and Ukraine

• However, large speculators reduced their net long positions in COMEX Gold to 199,737 from 211,400 contracts over the previous week, indicating bearish sentiment in the gold market

• MCX gold prices are likely to rise towards | 48,300 levels due to concerns over rising geopolitical tensions between Russia and Ukraine. Further, elevated inflation may boost the demand for safe heaven metal. However, sharp upside may be capped on rise in risk appetite in the global markets and uptick in the dollar index

• Silver prices are expected to take cues from gold prices and likely to march towards | 63,000 level for the day

Base Metal Outlook

• Copper prices rebounded 0.50% on Monday despite increase in LME inventories and economic data from top consumer China suggested slowing demand for industrial metals

• Property investment in China dropped by 13.9% year on year in December, falling at the fastest pace since early 2020. Investment grew 4.4% in 2021, the slowest annual growth since 2016

• Further, stocks of copper in LME registered warehouses increased to 92,850 tonnes, putting pressure on copper prices

• MCX copper prices are likely to trade in the range of | 732 to 748 levels with a negative bias on the back of rise in LME inventories. Further, strong dollar and concerns over China’s economic growth may continue to put pressure on copper prices for the day

Energy Outlook

• Oil futures rallied 0.66% on Monday on the back of tight supply and easing worries of Omicron variant fuel demand

• Natural gas futures rose more than 1.08% on Monday mainly due to decline in Russian Yamal pipeline gas flows to Europe and rising geopolitical tensions between Russia and Ukraine

• Meanwhile, Libya’s total oil output is back to 1.2 million barrels per day (bpd), which has put pressure on crude oil prices

• At the same time, Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday that it is the prerogative of the US government whether to release supply from strategic petroleum reserves

• MCX crude oil prices are likely to trade in the range of | 6180 to 6380 levels with a positive bias amid concerns over tight supply. Further, investors will anxiously wait for an Opec monthly report

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