MCX crude oil prices are likely to trade in a range of | 5,250 to 5,480 levels - ICICI Direct
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Bullion Outlook
Comex gold prices gained 0.37% on Friday after consumer prices data showed inflation rose in line with estimates last month. Further, a decline in US treasury yields and weakness in the dollar index boosted the safe haven metal
US annual consumer prices accelerated to 6.8% in November 2021, highest level since 1982
The dollar index declined 0.20% on Friday, making bullion cheaper for holders of other currencies
MCX gold prices are likely to trade in a range of | 48,100 to 48,500 levels with a positive bias due to higher inflation and weakness in dollar index. However, a sharp upside may be capped on rise in risk appetite in the US markets and expectation of US Fed’s earlier interest rate hike. Silver prices are expected to take cues from gold prices and likely to head towards 61,700 levels for the day
Base Metal Outlook
Copper prices eased 0.82% on Friday as investors turned cautious after US higher inflation data that could influence US Federal Reserve's rate hike path
Further, renewed worries about the Omicron Coronavirus variant and concerns about China’s real estate market liquidity crisis also weighed on industrial metal prices
Moreover, LME registered warehouse inventories of copper rose to a one month high of 81,775 tonnes, the highest in last two weeks
MCX copper prices are likely to trade in a range of | 720 to 735 levels with a negative bias due to concerns over China’s property crisis. Further, worries about monetary policy tightening in the US may hamper demand for industrial metals. However, a sharp downside may be prevented on weakness in the dollar index
Energy Outlook
Crude oil prices surged 1.42% on Friday after comments from BioNTech and Pfizer that a three shot course of their Covid-19 vaccine could protect against infection from the Omicron variant
However, according to the Commodity Futures Trading Commission (CFTC) data released on Friday, large speculators reduced their net long positions in WTI crude oil to 367,200 from 387,234 over the previous week, indicating bearish sentiment in the crude oil market
Further, US oil rigs increased to 471 from 467 last week while gas rigs rose to 105 from 102, highest since March 2020
MCX crude oil prices are likely to trade in a range of | 5,250 to 5,480 levels with negative bias due to higher crude oil supply from Opec+ nations and demand concerns over Omicron Coronavirus variant. Further, investors will anxiously wait for an Opec monthly report
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