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Daily Commodity Outlook

Bullion Outlook

• MCX Gold prices fell more than 1% on Friday dragged lower by a stronger US dollar and worries that the Federal Reserve will persist with sharp rate hikes to curb inflation

• Further, stronger than expected macroeconomic data from the US, pressurised bullion prices

• MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar. It is likely to break the key support level of | 50,050 to trade in a downward trend towards the level of | 49,950 in coming trading session

• Additionally, silver prices likely to take cues from gold prices to trade in downward trend towards | 54,100

Base Metal Outlook

• MCX copper prices tumbled almost 1.30% on Friday amid prospect of further US rate hikes and a stronger US dollar

• However, further downside in copper was cushioned on hopes of more stimulus package from China

• MCX aluminium prices fell 2.50% on Friday amid a sharp rise in aluminium LME warehouse inventories, which pointed to ample supply

• However, we expect MCX aluminium prices to trade with a positive bias for the day on hopes of more stimulus measures from the China to boost the economy of base metals

Energy Outlook

• MCX crude oil prices dropped nearly 4% on Friday as worries about a global recession and weak oil demand, especially in China, outweighed support from a significant decrease in the Opec+ supply target

• Further, rise in US Baker Hughes oil rig counts from 602 to 610, their highest since March 2020, weighed on crude oil prices

• We expect MCX crude oil prices to trade with a negative bias for the day on expectations of weaker demand from the China

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