MCX crude oil prices are expected to correct towards 8,000 levels

01-01-1970 12:00 AM | Source: ICICI Direct

MCX crude oil prices are expected to correct towards 8,000 levels - ICICI Direct

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Bullion Outlook

• MCX gold prices surged around 0.30% on Wednesday amid a retreat in US 10 year bond yields

• US dollar index slipped on Wednesday after Federal Reserve Chair Jerome Powell said the US central bank is strongly committed to bringing down inflation and that the pace of future rate increases will continue to depend on incoming data and evolving economic outlook

• However, optimistic sentiments in the US markets capped further gains in precious metal prices

• MCX gold prices are expected to trade in the consolidation range of | 50,500 to | 51,200 levels for the day on anticipation of improved jobless claims data from the US. However, concerns over a slowdown in global economic growth and weakness in dollar index will continue to support bullion prices on the lower side. Additionally, investors will keep an eye on a series of macroeconomic data from the US

Base Metal Outlook

• LME Copper prices eased more than 2.0% on increasing fears that rapid interest rate hikes would push the global economy into recession

• The world refined copper market showed a 3,000-tonne surplus in April, compared with a 22,000-tonne deficit in March, the International Copper Study Group said in its latest monthly bulletin on Tuesday

• However, a significant decline in LME inventories along with supply disruptions from Chile’s copper mine restricted further downsides in copper prices

• MCX copper prices are expected to slip towards | 720 levels for the day on expectation of disappointing manufacturing PMI data from the US

Energy Outlook

• WTI crude oil prices declined more than 3.0%, weighed by plans from the US President Biden to cut taxes on fuel

• The White House has called an emergency meeting with top US refiners on Thursday to discuss ways to bring down record gas prices that have driven inflation to 40-year highs

• Moreover, oil prices remained under pressure as investors worried that rate hikes by the Federal Reserve could push the US economy into recession, dampening demand for fuel

• MCX crude oil prices are expected to correct towards | 8,000 levels for the day due to concerns over slowdown in global economic growth that may lower fuel demand. Additionally, market participants will remain cautious ahead of inventories data from the US