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Bullion Outlook

• Comex Gold prices retreated 0.54% on Tuesday amid a stronger dollar and a sharp rise in US treasury yields

• US 10 year bond yields rebounded to almost three-year highs on Tuesday mainly due to expectation that US Fed will hike interest rates aggressively to tame the elevated inflation, increasing the opportunity cost of holding non-yielding bullion

• However, gold prices found support from the possibility of further sanctions on Russia from western nations

• MCX gold prices are expected to slip further towards | 50,900 level for the day due to a firm dollar. However, risk aversion in the global markets may restrict further downsides in gold prices. Silver prices are expected to take cues from gold prices and get dragged down towards | 65,500 level for the day. Additionally, investors will anxiously await the outcome of US Fed meeting minutes

Base Metal Outlook

• MCX Copper and other industrial metal prices surged on Tuesday, amid decline in output from top producer Chile and more sanctions on Russia raised concerns about supply shortages • According to Chilean Copper Commission (Cochilco) on Monday, Chile's copper production fell 7.50% in February to 394,700 tonnes, which provided significant support to copper prices

• However, worries about China’s economic outlook and consistent increase in LME copper inventories over the last week capped further gains in copper prices

• MCX copper prices are likely to trade in the consolidation range of | 830 to 814 for the day due a firm dollar index. However, supply concerns from Russia and expectation of further easy monetary policy support from China’s central banks are expected to provide some support to the industrial metal prices on the lower side

Energy Outlook

• MCX crude oil prices rallied by 1.14% on Tuesday after the US and European countries considered imposing new sanctions on Russia for alleged war crimes in Ukraine. German Foreign Minister Annalena Baerbock said the ban on coal will be followed by oil and then gas

• Russia's daily oil & gas condensate production in March has declined by 4%, raising concerns over supply from Russia

• However, China extended a lockdown in Shanghai that raised worries over fuel demand

• MCX crude oil prices are likely to consolidate in the range of | 7,550 to 7,950 levels for the day due to supply disruptions from Russia and expectations of lower stockpiles data from the US. However, weaker fuel demand from China and excessive oil supply from US Strategic Petroleum Reserve (SPR) will weigh on oil prices

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