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Daily Commodity Outlook

Bullion Outlook

* MCX gold prices dropped yesterday amid an uptick in US dollar index and US 10 year’s treasury yields

* However, further downside was prevented by weaker-thanexpected macroeconomic data from the US

* MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar index. It is likely to break the key support level of | 50,400 to trade in a downward trend towards the level of | 50,300 in the coming trading session

* However, expectations of disappointing CB consumer confidence data from the US may support bullion prices

Base Metal Outlook

* MCX copper and aluminium prices tumbled on Monday as yuan fell to its weakest against the dollar since 2008, making dollarpriced commodities costlier for Chinese buyers

* However, Chile's Codelco, the world's largest copper miner, expects copper demand in China, its main consumer, to be resilient, despite slower economic growth there. This prevented further downside in copper prices

* We expect MCX copper prices to trade with a negative bias for the day amid weakness in Chinese Yuan, which may make copper costlier for Chinese buyers

Energy Outlook

* MCX crude oil prices advanced on Monday as China’s fuel exports hit a 15-month high and as weakening US business activity data eased expectations for more aggressive interest rate hikes

* Further, crude oil prices were supported after data showed China's oil imports from Russia soared 22% in September from a year earlier, as independent refiners bought more lower-priced Russian fuel in the face of weak domestic refining margins

* We expect MCX crude oil prices to trade with a positive bias for the day amid rising fuel demand in China

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