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Bullion Outlook

• Gold prices hit its 6 week low on Thursday as drop in US weekly jobless claims number supported the Fed’s stance on higher interest rate regime. Meanwhile, country’s GDP increased at a revised 2.7% annualised rate in Q4 2022, revised down from 2.9% reported last month

• Silver futures hit the most and slide more than 1% after strong rally in dollar index, which crossed its previous highs at 104.66

• Gold prices are likely to trade on a negative bias as strong economic numbers and expectation of higher US PCE numbers would raise the probability of further rate hike. MCX gold is likely to slide towards the next support at 55200, followed by 55000. On the upside 10 day EMA at 56200 would act as key resistance for the price

• MCX Sliver is likely to follow the path of the yellow metal and expected to slip towards 65400-65000 zone

Base Metal Outlook

• Base metals extended its decline on Thursday amid expectations of more rate hikes from major central banks across the globe stalling economic growth and hampering demand for the metal.

• The consumption of the red metals in China is still in a phase of recovery as higher prices of copper restrained the consumption

• Meanwhile depleting stocks in LME warehouse and ongoing supply concerns from major south and Central American regions has restricted the downside in price

• Copper is expected to move towards the key supports of 763. A move below 763 would weaken the trend and push the price to next key support at 758-755 zone.

• Meanwhile, focus shifts towards US PCE price index numbers, which is expected to show a gain by 0.4%, against previous reading of 0.3%

Energy Outlook

• Natural gas bounced from its day’s low as recent weather forecast pointed towards a colder-than–expected temperature in the US

• Crude oil prices advanced on supply concerns after Russia planed to cut oil exports . Russia plans to curb its oil exports from the western ports by 25% in March, exceeding its earlier production cut of 500000 barrels per day. Meanwhile, sharper than expected jump in US inventories added to demand concerns. EIA reported a 9 th straight week rise in inventories to 7.6M barrels against a rise of 2.9M barrels

• Crude is likely to trade on a weaker note as expectation of higher inflation number could spark further rate hike concerns. MCX crude oil is expected to weaken towards 6100 as long as price trades under the 10 day EMA at 6380

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