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Bullion Outlook

• MCX gold prices eased almost 1% on Wednesday amid optimistic sentiments in US markets and on rebound in US 10 year treasury yields

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

• However, rising geopolitical tensions between European Union and Russia over the Ukraine issue prevented further downsides in bullion prices

• MCX gold prices are likely to slip towards | 50,900 for the day due to elevated dollar index and expectation of improved initial jobless claims data from the US. Silver prices are expected to take cues from gold prices and may correct towards | 64,000 levels for the day. Additionally, investors will remain cautious ahead of GDP data from the US

Base Metal Outlook

• LME Copper and other industrial metal prices surged on Wednesday, supported by expectations that China will step up infrastructure construction to boost domestic demand and drive economic growth

• However, sharp gains were limited by unsatisfactory pending home sales data from the US. As per National Association of Realtors (NAR) report showed, pending home sales index dropped to 103.70 level in March 2022 compared to 105 levels in the previous month, the lowest level since May 2020 due to rising borrowing costs

• MCX Copper prices are expected to trade with a negative bias for the day amid significant increase in LME inventories and on firm dollar index. It is facing strong resistance at | 802 levels over the last couple of trading sessions. As long as it sustains below this level, it is likely to correct further towards | 775 levels for the day

Energy Outlook

• MCX crude oil prices retreated 1.0% on Wednesday amid a sharp rise in US oil stockpiles and concerns over lower fuel demand from China

• US commercial crude oil stockpiles surged to 414.40 million barrels from 413.73 million barrels over the last week primarily due to higher oil supply from US Strategic petroleum Reservers (SPR)

• US natural gas futures rose more than 5.0% after Russia suspended gas supplies to Bulgaria and Poland on Wednesday for rejecting its demand for payment in roubles

• MCX Natural gas price are expected to rise further towards | 585 for the day due to lower gas flow from Russia to Europe via the Ukraine pipeline. Further, higher demand from European Union countries will continue to provide some support to natural gas prices on the downside. Additionally, investors will keep an eye on natural gas storage data from the US

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