MCX gold prices are likely to rise further towards 48,500 levels - ICICI Direct
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Bullion Outlook
Gold prices surged 0.41% on Friday amid weakness in dollar index and on decline in US treasury yields
Further, rising concerns over Omicron variant and higher inflation boosted the demand for the safe haven metal
US benchmark 10 year treasury yields declined to 1.51%, reducing the opportunity cost of holding non yielding bullion
MCX gold prices are likely to rise further towards 48,500 levels due to decline in US treasury yields and on risk aversion in the US markets. On the flip side, a rally in the rupee against the dollar may continue to pressure gold prices on the higher side
Silver prices are expected to take cues from gold prices and are likely to rise further towards 63,700 level for the day
Base Metal Outlook
Copper prices surged 0.68% on Friday amid better-than-expected manufacturing data from China. China’s Manufacturing Purchasing Manager’s Index (PMI) rose to 50.3 from 50.1 in November, official National Bureau of Statistics (NBS) data showed on Friday
Meanwhile, operations at Las Bambas mine would be restarted after the company said it reached a deal with the Peruvian community that blocked a key transport road for a month, forcing it to halt copper output
Further, copper inventories in LME registered warehouses declined to 88,950 tonnes, lowest since 2018
MCX copper prices are likely to trade in a range of | 742 to 758 levels with a positive bias due to consistent decline in LME inventories and on weakness in dollar index. However, a sharp upside may be capped on demand concerns over Omicron variant
Energy Outlook
Oil prices declined 2.06% on Friday as the Omicron Coronavirus variant poses headwinds to recovering fuel demand and risks a supply glut as producers pump more oil
According to Baker Hughes data released on Friday, US oil rigs were steady at 480 last week, while gas rigs were also unchanged at 106
Meanwhile, Russian Deputy Prime Minister Alexander Novak has said that country's oil output is expected to rise further to 540-560 million tonnes in 2022
Further, US oil production is also expected to rise to 11.9 million barrels per day in 2022, according to government projections
MCX crude oil prices are likely to trade in the range of | 5,450 to 5,680 levels with a negative bias due to global demand concerns and higher supply from US and Opec+ countries
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