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Bullion Outlook

• Comex gold prices surged 0.31% on Thursday on the back of rising geopolitical tensions between the US and Russia. However, sharp upsides were capped on improved economic data from the US and a rally in US treasury yields

• Tensions between the US and Russia have heightened, with US officials this week considering export control measures to disrupt Russia's economy should Russia invade Ukraine

• MCX gold prices are likely to trade in a range of | 48,000 to 48,400 levels with a positive bias due to rising concerns over US Russia geopolitical tensions and higher inflation. However, a sharp upside may be prevented on rising optimism about the global economic outlook and rally in the rupee against the dollar

• Silver prices are expected to take cues from gold prices and are likely to rise further towards 63,000 levels for the day

Base Metal Outlook

• MCX Aluminium prices gained 0.25% on Thursday as surging energy prices raised concerns on higher production costs and smelter shutdowns • Further, prices were also got support from improved macroeconomic data from the US and revived risk appetite across markets as investors hoped the Omicron Coronavirus variant will have less economic impact than feared

• Meanwhile, Bloomberg reported on Wednesday that Europe's largest aluminium smelter in France had halted 3% of its production capacity. Moreover, LME registered warehouse inventories of aluminium declined to 9,68,650 tonnes, lowest since 2016

• MCX Aluminium prices are likely to trade in a range of | 223 to 230 with positive bias due to supply disruptions and decline in inventories

Energy Outlook

• Oil prices surged 1.11% on Thursday on signs that the worst effects of the Omicron variant may be more containable than previously feared

• US natural gas futures declined 5.28% on Thursday after the US Energy Information Administration (EIA) reported that utilities pulled 55 billion cubic feet (bcf) of gas over the last week, which was lower than previous week’s withdrawal from the storage

• Meanwhile, the Organization of Petroleum Exporting Countries (Opec), Russia and allies have left the doors open to reviewing their plan to add 400,000 barrels per day of supply in January

• MCX Crude oil prices are likely to trade in the range of | 5,460 to 5,600 levels with a positive bias due to expectations of lower oil supply from Opec. However, fresh restrictions imposed by many countries may continue to pressurise crude oil prices

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