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Bullion Outlook

• Comex gold prices eased 0.80% on Tuesday amid a optimistic sentiments in the global markets and on uptick in US dollar index

• Further, expectations of aggressive monetary policy tightening by US Fed dented the demand for safe haven assets

• However, a sharp decline in US 10 year bond yields and higher inflation prevented further downsides in bullion prices

• MCX gold prices are expected to trade with a negative bias due to elevated dollar index. It has been facing resistance at | 51,500 levels in the last couple of days. As long as it sustains below this level, it is likely to correct towards 100 day moving average, which is around | 50,200. Silver prices are expected to take cues from gold prices and may correct towards | 60,000 levels for the day. Also, investors remain cautious ahead of CPI inflation data from the US

Base Metal Outlook

• LME Copper prices and other industrial metals declined on Tuesday as growing worries over industrial metal demand amid continued Covid-19 lockdown restrictions in China • Further, copper prices remained under pressure as worries about expectations of faster monetary policy tightening by US Fed pushed dollar index almost to a multi year high, making metals costlier for holders of other currencies • However, operations remain suspended in Peru's largest copper mine MMG Ltd’s Las Bambas while a sharp decline in LME copper inventories supported copper prices on lower side • MCX copper price is trading below the key support levels of 200 day moving average (| 755). As long as it sustains below this level, it is likely to slip towards | 740 levels for the day

Energy Outlook

• WTI crude oil prices slipped more than 3.0% as China extended lockdowns and growing concerns over slowing global economic growth weighed on the outlook for fuel demand

• Moreover, European Union sanctions on Russian oil approval has been delayed amid requests from Eastern European members for exemptions and concessions, which has continued to pressurise oil prices on higher side

• Additionally, an EIA short term report showed US crude oil output is expected to rise 720,000 barrels per day to 11.91 million bpd in 2022

• MCX crude price is trading below the daily mean levels of | 7,960. As long as it sustains below this level, it is likely to correct towards mean2 sigma levels of | 7,490 in the coming days. Further, investors will keep an eye on crude oil stockpiles from the US

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