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Bullion Outlook

• Gold prices slipped 0.23% on the back of optimistic sentiments in the US markets and on rebound in US treasury yields

• US 10 year bond yields jumped to almost three-year highs on Friday on investor’s expectation that US Fed will hike interest rates aggressively to combat elevated inflation, increasing the opportunity cost of holding non yielding bullion

• However, disappointing macroeconomic data from the US prevented further downsides in bullion prices

• MCX gold prices are expected to correct towards | 51,400 level for the day due to stronger dollar index and on expectation of aggressive monetary tightening measures by the US Fed. However, rising conflict between Russia and Ukraine may prevent further downsides in gold prices. Silver prices are expected to take cues from gold prices and move further towards | 68,000

Base Metal Outlook

• Copper and other industrial metal prices eased on Friday amid unsatisfactory pending home sales data from the US

• US National Association of Realtors (NAR) said on Friday, pending home sales index dropped to 104.90 level in February 2022 compared to 109.40 levels in the previous month, the lowest level since May 2020 amid increasing mortgage rates and high house prices

• However, a significant decline in LME inventories and supply disruptions from Russia has continued to support industrial prices on the lower side

• MCX copper prices are expected to trade with a negative bias due to demand concerns from China and on firm dollar. It is facing strong resistance at | 828 levels. As long as it sustains below this level, it is likely to correct further | 805 levels for the day

Energy Outlook

• Crude oil prices surged by 0.21% on Friday as investors remain concerned over supply disruptions from Saudi Arabia amid a missile attacked at an oil storage depot in Jeddah

• Yemen's Houthis said they launched attacks on Saudi Arabia’s Aramco facilities on Friday, which may temporarily reduce Saudi Arabian oil supply and support oil prices on the lower side

• According to the Baker Hughes report released on Friday, US oil rigs increased to 531 from 524 last weeks, highest since October 2019

• MCX crude oil prices are expected to rise further towards | 8,800 to | 8,850 for the day due to supply disruptions from Saudi Arabia and consistent fall in global crude oil stockpiles. Additionally, concerns over US sanctions on Russian oil may continue to support oil prices on the lower side. However, worries about lower fuel demand from China may cap further upsides in the crude oil prices

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