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Bullion Outlook

• Comex gold prices rebounded by 0.66% on Thursday as market participants raised concerns about more financial sanction against Russia over its invasion of Ukraine and on worries over elevated inflation, boosting the demand for safe haven assets

• However, better-than-expected macroeconomic data from the US capped further upsides in bullion prices. The number of Americans filing new claims for unemployment benefits declined to 166,000 from 171,000 for the week ended March 31, the lowest since 1969

• MCX gold prices are expected to trade in the range of | 51,500 to 52,100 for the day due to concerns over higher inflation and Russia-Ukraine turmoil. However, expectation of further interest rate hike by US Fed may continue to weigh on bullion prices. Silver prices are expected to take cues from gold prices and trade in the range of | 66,300 to 67,200 for the day

Base Metal Outlook

• LME Copper prices declined by 0.42% on Thursday amid a stronger dollar index and a sharp rise in LME inventories

• Further, Covid-19 restrictions in top consumer China and prospects of higher US rate hikes fuelled concerns about a slowdown in global economic outlook, weighing on industrial metal demand

• LME registered warehouse inventories of copper surged to 101,275 tonnes from 91,400 tonnes in the past one week. A significant rise in inventories has continued to pressurise copper prices on higher side

• MCX copper prices are expected to trade with a negative bias mainly due to a firm dollar index and on worries about global industrial metal demand. MCX copper price is facing strong resistance at | 825 levels over the couple of trading sessions. As long as it sustains below this level, it may retest | 800 levels in coming days

Energy Outlook

• Nymex crude oil prices slipped 1.74% on Thursday amid easing fears about the European countries imposing sanctions on Russian energy sector and on higher oil supply from global reserves

• US natural gas futures surged 2.86% on Thursday after the US Energy Information Administration (EIA) reported that utilities pulled 33 billion cubic feet (bcf) of gas over the last week, which was lower than the previous week’s withdrawal from storage

• At the same time, natural gas prices also gained support from Russian gas supply to Europe via Ukraine have dropped to 105.40 million cubic metre from 108.40 mcm over the previous day

• MCX Natural gas price are expected to rise further towards | 490 for the day, mainly due to a consistent decline in US Natural gas stockpiles and on worries over lower supply from Russia are expected to continue to boost natural gas prices in coming days

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