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Bullion Outlook

* Gold prices eased 1.09% on Thursday as minutes of the US Federal Reserve’s December also signalled balance sheet reduction along with increase in interest rates

* US benchmark 10 year treasury yields surged to 1.73%, increasing the opportunity cost of holding non yielding bullion

* MCX gold prices are likely to correct further towards | 47,100 levels due to uptick in US treasury yields and on expectations of better jobs data from the US. However, a sharp downside may be prevented on risk aversion in the global markets and on higher inflation

* Silver prices are expected to take cues from gold prices and are likely to get dragged down towards | 59,500 level for the day. Meanwhile, investors will keep an eye on series of macroeconomic data from the US

MCX Gold vs Silver Performance

Base Metal Outlook

* Copper prices declined 1.18% on Thursday as US Federal Reserve's December meeting minutes indicated that interest rates may rise quicker than expected and on concerns over China's property sector

* Chinese developer Shimao Group has defaulted on a loan after missing a 645 million yuan ($101 million) payment, the lender said in a letter on Thursday, a sign of distress in China's property sector

* Meanwhile, China's Yangshan copper premium for refined copper imports has slipped to $78 a tonne, its lowest since August

* However, LME registered warehouse inventories of copper declined to 85,950 tonnes, which has supported the prices on the lower side

* MCX copper prices are likely to correct towards | 725 levels for the day due to worries over China’s real estate sector. However, a sharp downside may be prevented on falling LME inventories.

MCX Copper vs. Nickel Performance

Energy Outlook

* Oil prices surged 1.92% on Thursday on the back of escalating unrest in Opec+ oil producer Kazakhstan and supply outages in Libya

* Russia sent paratroopers into Kazakhstan on Thursday to help quell a countrywide uprising after deadly violence spread across the tightly controlled former Soviet state

* Moreover, Libyan oil output is down by over 500,000 barrels per day due to pipeline maintenance and oilfield shutdowns

* Meanwhile, Saudi Arabia has reduced the official selling price for all grades of crude it sells to Asia in February by at least $1 a barrel

* MCX crude oil prices are likely to trade in the range of | 5850 to 6050 levels with a positive bias due to supply disruptions. Further, investors will keep an eye on rigs count data from the US

MCX Crude Oil vs. Natural Gas Performance

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