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Bullion Outlook

• Comex gold prices gained around 0.60% amid a retreat in US 10 year treasury yields and on weakness in dollar index.

• Further, disappointing ADP nonfarm employment change data from the US lifted demand for precious metal

• However, aggressive monetary policy tightening by US Fed restricted further gains in bullion prices. US Federal Reserve raised its key benchmark interest rate to 1.0% from 0.50%, the biggest rate hike since 2000 and said it would begin trimming its bond holdings next month to combat the elevated inflation

• MCX gold prices are expected to trade with a positive bias on expectation of unsatisfactory initial jobless claims data from the US. It is taking support at | 50,480 levels over the last couple of days. As long as it sustains above this level, it is likely to move further towards | 51,200 levels for the day

Base Metal Outlook

• LME aluminium prices surged 1.30% on Wednesday as investors hoped for monetary policy support from China’s central bank

• Further, aluminium prices gained as smelters in Europe reduced their output of aluminium in recent months amid higher energy cost.

• On the inventory front, continuous decline in LME inventories of aluminium provided significant support to prices on the lower side. LME registered warehouse inventories of aluminium eased to 573,975 tonnes from 579,600 tonnes over the past one week

• MCX Aluminium prices are expected to trade with a positive bias for the day. It is holding support at | 240 levels. As long as it sustains above this level, it is likely to head towards 100 day moving average, which comes to around | 256 levels in the coming sessions

Energy Outlook

• WTI crude oil prices advanced almost 6.0% on Wednesday as the European Union proposed a ban on Russian crude oil phased in over the next six months

• As per IEA report showed, Europe imports around 3.50 million barrels of Russian oil products daily. Russian oil output may decline to 8.68 million barrels per day in 2022 from 10.48 million barrels per day in 2021

• However, a sharp rise in US crude oil stockpiles capped further gains in oil prices. US commercial crude oil inventories increased to 415.70 million barrels from 414.40 million barrels over the last week primarily due to higher oil supply from US Strategic petroleum Reserves (SPR)

• MCX crude oil are expected to rise further towards | 8,300 for the day due to worries over tight supply from Russia. Additionally, market participants will remain cautious ahead of an Opec meeting

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