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Daily Commodities Outlook

Bullion Outlook

• Gold prices edged lower on Friday amid rebound in US dollar index and uptick in US 10 years treasury yields

• Further, world’s top gold consumer China reported a newly daily record for COVID-19 infections, as cities across the country continued to enforce curbs to control outbreaks

• Gold prices are expected to trade with a negative bias for the day amid strong dollar and rise in US 10 year treasury yields. Meanwhile, sharp downside may be cushioned on expectations that US Fed may slow the pace of interest rate hike from December. MCX Gold is likely to break the key support level of  52,500 to continue its downward trend towards the level of ? 52,350 in the coming trading session

• Additionally, silver prices are expected to take cues from gold prices and trade in downward trend towards the level of  61,000

Base Metal Outlook

• LME copper prices dropped on Friday on strong dollar and as surging COVID-19 cases and lockdowns in China hit demand

• Further, copper prices were pressurised by rise in copper inventories at LME registered warehouses

• Meanwhile, sharp downside was cushioned as top consumer China stepped up measures to support its economy and the metalsintensive property sector

• MCX Copper prices are expected to trade with a negative bias for the day amid strong dollar and growing civil unrest in China over renewed COVID-19 lockdowns. Additionally, prices may slip on concern over slowdown in global economic growth due to rising inflation and interest rates. MCX Copper is facing resistance near 678 levels, as long as it sustains below this level it may slip further till 672

Energy Outlook

• WTI crude oil prices tumbled amid worries about Chinese demand and negotiation over a Western price cap on Russian oil

• Further, crude oil prices were pressurised after China, the world's top oil importer, reported a new daily record for COVID-19 infections, as cities across the country continued to enforce mobility measures and other curbs to control outbreaks

• Furthermore, market participants remained cautious ahead of OPEC+ meeting scheduled on 4 th December

• Crude oil prices are expected to trade with a negative bias for the day amid strong dollar and as protest in China over strict COVID-19 curbs fueled demand worries. Additionally, investors will remain cautious ahead of agreement on Western price cap on Russian oil and OPEC+ meeting. MCX Crude oil is likely to break the key support level of 6200 to continue its downward trend towards the level of 6130

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