MCX gold (August futures) price is trading above the daily mean levels of 50,880

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

MCX gold (August futures) price is trading above the daily mean levels of 50,880 - ICICI Direct

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Bullion Outlook

* Comex gold prices gained around 0.20% on the back of a sharp decline in the US dollar index

* At the same time, disappointing macroeconomic data from the US lifted demand for safe haven assets. US consumer sentiment slumped to 58.40 levels in May 2022 compared to 65.50 levels in the previous month, lowest level in nearly 11 years on worries about inflation

* However, optimistic sentiments in global markets and rebound in US 10 year bond yields capped further gains in bullion prices

* MCX gold (August futures) price is trading above the daily mean levels of | 50,880. As long as it sustains above this level, it is expected to head towards | 51,300 levels for the day. Silver prices are also expected to take cues from gold prices and may rally towards | 62,500 levels

Base Metal Outlook

* MCX aluminium prices and other industrial metals rebounded on Friday due to weakness in dollar index

* Further, aluminium prices have been supported by supply disruptions from Russian mine. Workers at Rusal's subsidiary company COBAD went on strike from Thursday

* On the inventory front, continuous decline in LME inventories of aluminium provided significant support to prices on the lower side. LME registered warehouse inventories of aluminium eased to 471,075 tonnes from 504,275 tonnes over the past one week, lowest level since 2010

* MCX aluminium prices are expected to rally towards | 245 levels for the day on expectation of easy monetary policy support from China

Energy Outlook

* WTI crude oil prices surged around 0.86% on Friday as investors raised concerns about further tightening supplies in fuel as US driving season to accelerate demand

* Moreover, European Union countries are negotiating a deal on Russian oil sanctions that would embargo shipment deliveries but delay sanctions on oil delivered by pipeline to win over Hungary and other landlocked member states

* As per the Baker Hughes report, US total rigs count eased marginally to 574 from 576 over the last week, their first decline in 10 weeks

* MCX crude oil prices are expected to rise towards | 9050 for the day due to strong fuel demand from the US. Further, concerns over European Union sanctions on Russian oil will continue to support the prices on lower side.