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Daily Commodities Outlook

Bullion Outlook

* MCX gold prices edged higher by almost 1.00% on Tuesday amid a drop in US 10 year’s treasury yields while investors braced for the US inflation data later this week that could determine the Federal Reserve's future policy path

* Further, bullion prices were supported by a decline in US dollar index

* MCX gold prices are expected to trade with a positive bias for the day amid weakness in US 10 years treasury yields. It is likely to surpass the hurdle of ? 51,700 to continue its upward trend towards the level of ? 52,000 in coming sessions

* Also, silver prices are likely to take cues from gold movement and trade in upward trend towards the level of ? 63,000

Base Metal Outlook

* MCX Copper and aluminium prices advanced yesterday amid a drop in LME warehouse inventories and rise in risk appetite in the global markets

* Further, copper prices were supported as Chile's Codelco, the world's biggest copper miner, proposed a premium of $140 a tonne for 2023 supplies to at least two Chinese customers, a 33.3% increase from this year

* However, sharp upside was capped as China reaffirmed its stance to maintain strict zero-Covid 19 policy

* MCX copper prices are expected to trade with a positive bias for the day amid optimistic global market sentiments, weak dollar and continues decline in LME copper warehouse inventories. It is likely to trade towards the level of ? 684

Energy Outlook

* MCX natural gas prices fell more than 11% yesterday amid possible demand destruction from a tropical cyclone on track to reach Florida and the Southeast later this week, which will usually cause power outages that reduce demand for gas-fired generation

* MCX crude oil edged lower by 1.20% amid recession concerns and worsening Covid-19 outbreaks in top crude oil importer China heightened fears of lower fuel demand

* However, further downside was restricted after data from state-owned marketer SOMO showed, Iraq produced 4.651 million barrels per day (bpd) of crude in October, down by 11,000 bpd from September

* MCX crude oil prices are expected to trade with a negative bias for the day amid worsening Covid-19 outbreaks in top crude oil importer China, which may dent demand for crude oil

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