MCX gold prices are expected to trade with a negative bias for the day amid a strong US dollar - ICICI Direct
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Daily Commodity Outlook
Bullion Outlook
Gold prices slipped on a strong dollar and surge in US 10-year treasury yields. Gold prices lost ground as caution kicked in ahead of the US Federal Reserve meeting where the central bank is widely expected to hike rates by 75 bps. However, weaker than expected Chicago PMI from the US supported bullion prices
MCX gold prices are expected to trade with a negative bias for the day amid a strong US dollar. It is likely to break the key support level of | 50,130 to continue trading in a downward trend toward the level of 49,880 in coming trading sessions
Additionally, US ISM Manufacturing PMI is expected to rise from 50.0 to 50.90, which may pressurise bullion prices
Base Metal Outlook
Base metals broadly fell on Monday, as rising Covid-19 cases and weaker-than-expected manufacturing data in top consumer China raised concerns on softening demand
Furthermore, the market is also adopting a wait-and-see approach ahead of the Federal Open Market Committee due later this week and other central banks’ events, which could shed light on their future policies
We expect MCX copper prices to trade with a negative bias for the day amid renewed lockdowns in top metal consumer China on account of rising Covid-19 infection
Energy Outlook
MCX crude oil prices edged lower by almost 1.60% on Monday after weaker-than-expected factory activity data out of China and concerns that the country's widening Covid-19 curbs will curtail demand
However, China's crude oil imports for the first three quarters of the year fell 4.3% year on year for the first annual decline for the period since at least 2014
We expect MCX crude oil prices to trade with a negative bias for the day as prices are trading below the support level of 7100. As long as price trades below this, crude oil can test the support level of 6900
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