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Bullion Outlook

• Comex gold prices retreated around 0.30% on Thursday amid an uptick in dollar index and on surge in 10 year US treasury yields

• Further, expectation of aggressive monetary tightening policy by the US Fed to cool down inflation in the next meeting dented demand for safe haven assets

• However, disappointing macroeconomic data from the US and pessimistic market sentiments in global markets supported bullion prices on the lower side

• MCX gold prices are trading in the consolidation range of 20 DMA (| 50,775) and 50 DMA (| 51,325) over the last couple of weeks. Going ahead, the next leg of the move should resume only once gold prices manages to come out of this range. Silver prices are expected to take cues from gold prices and trade in the range of | 60,500 to | 62,200 for the day. Additionally, investors will remain cautious ahead of inflation data from the US

Base Metal Outlook

• MCX Copper and other industrial metals prices declined on Thursday as the re-imposition of some lockdown restrictions in China fuelled fresh worries about demand in the world's top metals consumer

• Moreover, a sharp rise in LME copper inventories along with weaker sentiments in global markets weighed on copper prices

• Chilean state-owned Codelco, the world's largest copper producer, said on Wednesday it stopped its Ventanas smelter and refinery to carry out maintenance after authorities declared an environmental emergency in the region

• MCX copper prices are expected to slip further towards | 778 for the day due to concerns over slowdown in global economic growth and rising dollar index

Energy Outlook

• WTI crude oil prices slipped 0.30% on Thursday after Shanghai imposed new Covid-19 lockdown and travel restrictions, which may lower fuel demand

• However, peak summer gasoline demand in the US continued to provide some support to oil prices on the lower side

• US natural gas futures advanced more than 2.50% on Thursday after largest US export plants producing liquefied natural gas (LNG), will shut for at least three weeks following an explosion at its Texas Gulf Coast facility

• MCX natural gas prices are expected to head towards | 720 to | 725 levels for the day due to worries over supply disruptions from US and lower gas flows to European countries from Russia. Additionally, investors will keep an eye on rig counts data from the US

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