IGI Logo

Daily Commodity Outlook

Bullion Outlook

• MCX gold prices advanced on Tuesday amid growing fears of the global economy going into recession • However, strong macroeconomic data from the US prevented further upside in bullion prices

• MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar index. It is likely to break the key support level of | 49,150 to trade in a downward trend towards the level of | 48,900 in the coming trading session

• Additionally, silver prices are likely to take cues from gold prices and drop towards the level of | 54,400

Base Metal Outlook

• MCX copper prices declined yesterday amid a continuous rise in copper LME warehouse inventories

• However, sharp downside was prevented by strong new home sales data from the US. New home sales in the US soared to a five-month high of 685,000 in August 2022 and above market expectations of 500,000

• We expect copper prices to trade with a negative bias for the day amid global economic slowdown and weak demand

• Additionally, investors will focus on pending home sales data from the US

Energy Outlook

• MCX crude oil prices advanced almost 2.00% on Tuesday from a nine-month low a day earlier, supported by supply curbs in the US Gulf of Mexico ahead of Hurricane Ian

• Further, crude oil prices were supported as Russia is likely to propose that Opec+ should reduces oil output by around 1 million barrels per day at its next meeting in October

• We expect MCX crude oil prices to trade with a positive bias for the day on expectations that Opec will cut crude oil production to break the negative momentum in prices amid recession fears

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

Above views are of the author and not of the website kindly read disclaimer