MCX gold prices are expected to rise further towards 52,300 - ICICI Direct
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Bullion Outlook
• Comex gold prices surged by 0.55% on Friday amid pessimistic sentiments in the US stock markets • At the same time, worries over higher inflation and slowdown in economic growth boosted demand for safe haven assets
• However, sharp upsides were capped on uptick in dollar index, making it expensive for holders of other currencies
• MCX gold prices are expected to rise further towards | 52,300 levels for the day due to rising concerns about a Russia-Ukraine conflict and on elevated inflation. However, expectation of aggressive monetary tightening measures by the US central bank may restrict further upsides in gold prices. Silver prices are expected to take cues from gold prices and may move further towards | 67,800 levels for the day
Base Metal Outlook
• LME aluminium prices rallied on Friday as smelters in Europe have reduced their output, raising concerns about supply. Moreover, investors hoped for more stimulus packages from China’s central bank and a consistent decline in aluminium inventories, providing significant support to industrial metal prices on the lower side
• However, the premium for aluminium shipments to Japanese buyers for April to June was set at $172 a tonne, down 2.8% from the previous quarter amid weaker demand from Japan and China weighed on aluminium prices
• MCX aluminium prices are expected to trade in a consolidation range of | 274 to | 280 for day due to tight supply and on expectation of easy monetary support from China. However, a stronger dollar index and rising LME inventories are expected to hurt industrial metal prices in the near term
Energy Outlook
• Nymex crude oil prices rebounded 1.88% on Friday as market participants feared supply disruptions from Russia
• Russia's production of oil & gas condensate fell to 10.52 million barrels per day (bpd) for April 1-6 from a March average of 11.01 million bpd
• As per the Baker Hughes report released on Friday, US total rigs count increased to 689 from 673 over the last week. Even though the rig count has climbed to a 20-month high, oil production is still below pre-pandemic levels
• MCX crude oil prices are likely to trade in the consolidation range of | 7,300 to 7500 due to lower production from Russia. However, worries about China’s fuel demand and higher supply from global strategic reserves may weigh on oil prices
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