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Bullion Outlook

Comex gold prices surged 0.76% as the dollar eased from its 16- month high and on decline in US treasury yields. Further, inflation worries boosted the demand for safe haven metal

US benchmark 10-year treasury yields declined to 1.60, reducing opportunity cost of holding non-yielding bullion

MCX gold prices are likely trade in a range of 48,900 to 49,700 levels with positive bias on weakness in dollar and risk aversion in global markets. Further, concerns over rising Covid-19 cases in Europe may support the safe haven metal

Silver prices are expected to take cues from gold prices and will likely move towards 67,000-67,300 in coming sessions Further, investors will now focus on unemployment claims data from US

Base Metal Outlook

Copper prices declined 1.98% on Wednesday amid demand concerns and rising warehouse inventories

LME copper inventories in registered warehouses increased to 99,450 tonnes for the first time in a month. Further, the spread between spot copper over the three month contract declined to $15.50, suggesting that the tightness in nearby supplies has reduced

Chinese coal prices continued to fall as Chinese mines ramp up production and cheaper coal should reduce energy costs for metal smelters, which has put pressure on industrial metals prices

Copper prices are expected to trade with a negative bias on the back of a rise in LME inventories and decline in coal prices. MCX copper price has broken the key support level of 200 day moving average on a daily closing basis, which suggests that price will likely correct towards 680 in the coming sessions

Energy Outlook

Crude oil prices declined 3.26% on Wednesday after US President Joe Biden and Chinese leader Xi Jinping discussed releasing oil from their strategic petroleum reserves to control the rising gasoline prices

According to EIA weekly report released on Wednesday, US crude oil inventories declined by 2.1 million barrels per day over the last week. Further, U S crude imports fell last week by 490,000 barrels per day and overall exports increased to 3.6 million barrels per day

US natural gas futures slipped 6.0% on Wednesday due to expectations of US natural storage data set to increase by 25 billion cubic feet over the previous week

MCX crude oil prices are likely to trade in the range of | 5,650- 5900 levels with negative bias due to expectations of releasing SPR oil from China and US. Further, rising Covid-19 cases in Europe and China may hurt the crude oil demand

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