IGI Logo

Bullion Outlook

• Gold prices tumbled on Friday amid a strong dollar, rise in risk appetite in global markets. Market sentiments improved after the US Fed’s preferred measure of inflation core PCE price index slowed in February, lifting hopes the central bank may be reaching the end of its rate hiking cycle

• Meanwhile, further downside was restricted as the University of Michigan consumer sentiment for US was revised lower to 62 in March 2023, from a preliminary of 67. It was the first decline in sentiment in four months

• Gold is likely to trade with a negative bias for the day amid strong US dollar. Meanwhile, investors will closely watch ISM manufacturing PMI data from the US to gauge the economic health of the country and Federal Reserve’s next move. MCX gold is expected to break the key support level of 59,200 to continue its downward trend towards the level of 59,000

• MCX silver prices continued to rise on Friday and are likely to trade towards the level of 73,000

Base Metal Outlook

• MCX Copper prices dropped on Friday amid a rise in the US dollar index and as data showed Chinese factory growth slowed in March. The numbers beat expectations but highlighted doubts about the strength of China's post-C# manufacturing recovery

• Meanwhile, sharp downside was prevented on a drop in copper inventories at LME registered warehouses

• Copper is expected to trade with a positive bias for the day amid optimistic global market sentiments. Market sentiments improved as US inflation and consumer spending data lifted hopes the central bank may limit its rate hike campaign sooner than expected. MCX copper is likely to break the resistance level of 782 and move towards the level of 786 in the coming trading session

• MCX Aluminium prices edged up more than 0.70% on Friday and are expected to continue trading in an upward trend towards the level of 212

Energy Outlook

• Crude oil prices rose on Friday to record their second-straight week of gains as supplies tightened in some parts of the world and US inflation data indicated price rises were slowing

• Further, crude oil prices were supported after energy services firm Baker Hughes Co said US energy firms this week cut the number of oil and natural gas rigs, with the quarterly count dropping for the first time since 2020

• Crude oil prices are expected to trade with a positive bias for the day on a surprise announcement by Opec+ to cut production further in effort to support market stability. Opec and their allies including Russia announced production cuts of about 1.16 million bpd. MCX crude oil is likely to continue its upward trend towards level of 6300

• MCX Natural gas prices gained more than 4.90% on Friday and are likely to continue their upward trend towards the level of 192

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