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Daily Commodity Outlook

Bullion Outlook

• MCX gold prices dropped yesterday amid a rise in US dollar index and US 10 year’s treasury yields

• Further, bullion prices were pressurised as investors squared positions ahead of a widely expected big interest rate hike by the US Federal Reserve

• MCX gold prices are expected to trade with a negative bias for the day amid expectations of aggressive interest rate hike by the US Fed. It is likely to break the key support level of | 49,030 to continue its downward trend towards the level of | 48,930

• Additionally, silver prices will take cues from gold prices and may trade in a downward trend to touch | 55,400 level

Base Metal Outlook

• MCX Copper and aluminium prices slipped on Tuesday amid rising inventories in London Metal Exchange (LME) approved warehouses

• Further, copper prices were pressurised by weak building permits data from the US

• However, some support for base metals came from an easing of Covid restrictions in top consumer China

• We expect copper prices to trade with a negative bias for the day amid strong US dollar index. It is likely to trade in the range of 640-650.

Energy Outlook

• MCX crude oil prices dropped almost 0.80% as the dollar stayed strong and investors anticipated more central bank interest-rate hikes

• However, further downside was prevented after data showed Opec+ is now producing crude oil below its targets by a record 3.58 million barrels per day about 3.5% of global demand

• We expect MCX crude oil prices to trade with a negative bias for the day as recession fears may drag oil prices lower. It is likely to trade towards its key support level of | 6600

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