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Bullion Outlook

•Comex gold prices declined on Thursday amid a firm dollar index and on a sharp rise in US 10 year bond yields

• Moreover, disappointing data from the US prevented further downsides in bullion prices. The number of Americans filing new claims for unemployment benefits surged to 185,000 from 166,000 for the week ended April 7, 2022

• However, ongoing political conflict between Russia and Ukraine supported bullion prices on downside

• MCX gold prices are expected to move further towards | 53,300 levels for the day due to higher inflation and on concerns over Russia-Ukraine turmoil

• Silver prices are expected to take cues from gold prices and may head towards | 69,800 for the day

Base Metal Outlook

•LME Copper and other industrial metals prices surged on Thursday mainly due to worries over tight supply due to the Russia-Ukraine crisis

• Further, China's central bank kept borrowing costs of its medium-term policy loan unchanged, despite Beijing calling for more monetary stimulus to cushion an economic slowdown caused by new Covid-19 outbreak

• However, a sharp rise in LME copper inventories capped further gains in copper prices. LME registered warehouse inventories of copper increased to 110,675 tonnes from 103,775 tonnes in the past one week

• Copper prices are likely to rally further towards | 830 for the day amid supply disruptions from Russia and on expectations of more stimulus packages from China’s central bank

Energy Outlook

• WTI crude oil prices rallied 2.17% on Thursday amid European Union countries considering a ban on Russian energy sector and on easing lockdown restrictions from China

• The International Energy Agency (IEA) had warned on Wednesday that roughly 3 million barrels per day of Russian oil could be shut in from May onwards due to sanctions

• As per the Baker Hughes report released on Thursday, US total rigs count increased to 693 from 689 in the last week, their highest since April 2020

• MCX crude oil prices are expected to rise further towards | 8,200 levels for the day due to expectation of western countries imposing sanction on Russian energy sector. However, higher oil supply from global Strategic Petroleum Reserve (SPR) may cap the further upsides in oil prices

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