MCX gold prices are likely to trade in a range of | 47,100 to 48,700 levels - ICICI Direct
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Bullion Outlook
Comex gold prices declined 1.17% on Thursday after US Federal Reserve said, it would taper its bond purchases faster to tackle surging inflation despite economic recovery concerns amid the new Omicron coronavirus variant. However, a sharp downside was prevented on disappointing jobless claims data from US
The number of Americans filing new claims for unemployment benefits increased to 222,000 over the last week
US benchmark 10 year treasury yields increased to 1.45, increasing opportunity cost of holding non-yielding bullion
MCX gold prices are likely to correct further towards | 47,000 due to expectations of improved payrolls data from US and stronger dollar index. Silver prices are expected to take cues from gold prices and fall further towards 60,500 levels for the day
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Base Metal Outlook
Aluminium prices declined 2.18% on Thursday amid fears over the spread of the Omicron coronavirus variant and concerns over slowing economic growth in China weakened the outlook for demand
However, prices were slightly supported by LME inventories of the metal dropping to 889,575 tonnes, the lowest since September 2007.
According to international aluminium institute (IAI) report, Aluminium production outside of China rose by a marginal 1.7% to 21.97 million tonnes in the first 10 months of this year.
MCX Aluminium prices are likely to trade in a range of | 206 to 212 levels with a negative bias due to concerns of new Coronavirus variant and stronger dollar index. However, a sharp downside may be prevented on decline in LME inventories. Further, investors will keep an eye on series of macro economic data from US
Energy Outlook
MCX Crude oil prices declined 1.14% on Thursday after OPEC and its allies agreed to their existing policy of monthly oil output increases despite fears that a US release from crude reserves and the new coronavirus variant would lead to a new oil price rout
OPEC+ has agreed to go ahead with its planned January oil output rise of 400,000 barrels per day
US Deputy Energy Secretary David Turk said on Wednesday that Biden's administration could still adjust the timing of any release of reserves if prices dropped substantially
MCX crude oil prices are likely to trade in a range of | 4,700 to 5,075 levels with negative bias due to higher supply from OPEC countries and concerns over Omicron Coronavirus variant. Further, market participants will now focus on rig counts data from US
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