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Bullion Outlook

• International gold prices were flat on Wednesday, after gaining almost 1% in the last session, as treasury yields eased after US inflation data and worries over Ukraine conflict supported safehaven bids while a firm dollar plugged bullion's gains

• The US annual inflation rate accelerated to 8.50% in March 2022, the largest year-on-year gain since December 1981

• MCX gold prices are expected to rally further towards | 53,000 levels for the day due to elevated inflation and on risk aversion in global markets. However, stronger dollar index may limit further upsides in bullions prices

• Further, investors will keep an eye on a series of macroeconomic data from the US

Base Metal Outlook

• LME Zinc prices rebounded 3.75% on Tuesday due to concerns about supply disruptions from Russia and on decline in LME inventories

• At the same time, zinc prices also gained support from worries about further suspensions of smelters in Europe due to high energy prices

• In the past two weeks, LME registered warehouse stockpiles of zinc slipped to 120,825 tonnes from 139,950 tonnes, lowest since July 2020. A significant decline in LME inventories has continued to support zinc prices on the lower side

• Zinc prices are likely to trade with a positive bias for the day due to tight supply and on concerns over lower LME stockpiles. MCX Zinc prices are trading above key resistance levels of | 363 levels on an hourly basis. As long as it sustains above this level, it is likely to head further towards | 378 levels for the day. Additionally, market participants will focus on PPI data from the US

Energy Outlook

• WTI crude oil prices advanced 6.82% amid easing concerns about fuel demand from China as Shanghai city authorities relaxed some lockdown restrictions and on lower production from Russia

• Russian oil and gas condensate production fell below 10 million barrels per day (bpd) on Monday, its lowest since July 2020

• In a monthly report, Opec on Tuesday lowered its Russian oil production forecast by 530,000 barrels per day (bpd) for 2022. However, Opec countries cut forecasts for global oil consumption in 2022 by 410,000 barrels a day

• MCX crude oil prices are expected to trade in the consolidation range of | 7,350 to 7,850 levels due to expectation of higher crude oil stockpiles data from the US. However, consistent decline in Russian crude oil production will continue to support oil prices on lower side

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